Skip to main content

Westmoreland updates seasonal borrowing terms

Published by , Editor
World Coal,


Westmoreland Coal Co. has successfully modified certain terms of its revolving credit line to provide financing flexibility over the summer – a time when cash flow is typically at its lowest.

The changes include a 16 day extension to the seasonal borrowing period, an easing of the fixed charge coverage ratio from 1:10 to 1:15, and a reduction in the seasonal borrowing availability from US$25 million to US$19 million.

“The changes we made better accommodate the seasonal trends in our business,” said Jason Veenstra, Westmoreland’s Chief Financial Officer.

The seasonal borrowing period now runs from 15 June to 31 August. There was no change to the US$50 million base borrowing commitment.

Westmoreland owns opencast coal operations in the US and Canada, as well as underground coal mines in Ohio and New Mexico. It also has a stake in the ROVA coal-fired power plant in North Carolina through Westmoreland Resource Partners, a publically-traded coal master limited partnership.

Edited by .

Read the article online at: https://www.worldcoal.com/coal/29062016/westmoreland-updates-seasonal-borrowing-terms-2016-1035/

You might also like

Coal’s future: New report charts path to sustainability

FutureCoal’s latest report, ‘Roadmap for a Sustainable Coal Value Chain’, highlights how advanced coal technologies can reduce emissions, while continuing to support the global demand for energy and industrial growth.

 
 

Embed article link: (copy the HTML code below):