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Cloud Peak Energy extends and amends revolving credit facility and receivables securitisation facility

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World Coal,

Cloud Peak Energy Inc., one of the largest US coal producers and the only pure-play Powder River Basin coal company, has announced that, effective 24 May 2018, its wholly owned subsidiary Cloud Peak Energy Resources LLC entered into an Amended and Restated Credit Agreement among CPE Resources, the guarantors party thereto, PNC Bank, National Association, as administrative agent and a syndicate of lenders which amends and extends the prior credit agreement.

The primary modifications implemented by the Amended Credit Agreement are:

  • New three year term extends maturity of the Amended Credit Agreement from 21 February 2019 to 24 May 2021.
  • Maximum borrowing capacity under the Amended Credit Agreement was reduced to US$150 million, from the previous maximum capacity of US$400 million.
  • Requires new quarterly financial covenants of (a) a ratio of first lien gross debt under the Amended Credit Agreement, capital leases and the accounts receivable securitisation facility (including issued but undrawn letters of credit) to EBITDA (as defined in the Amended Credit Agreement) equal to or less than 1.75 to 1; (b) a ratio of EBITDA less capital expenditures to Fixed Charges (as defined in the Amended Credit Agreement) of not less than 1.15 to 1; and (c) a ratio of funded debt (excluding issued but undrawn letters of credit) less unrestricted cash to EBITDA equal to or less than (i) 4.00 to 1 through June 30, 2019, (ii) 3.50 to 1 from 30 September 2019 to 31 December 2019, (iii) 3.00 to 1 from 31 March 2020 to 30 June 2020 and (iv) 2.50 to 1 from 30 September 2020 to maturity.
  • Revised the minimum liquidity covenant to require minimum liquidity of not less than US$100 million as of the last day of each fiscal quarter (reduced from the prior requirement to maintain monthly liquidity of not less than US$125 million).

Effective 24 May 2018, CPE Resources also entered into an agreement extending the term of its accounts receivables securitisation program (the Receivables Program) from 23 January 2020 until 24 May 2021. The extension did not change the US$70 million maximum size of the Receivables Program.

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