Daily News: December 18, 2013

Barclays, Deutsche Said to Arrange Patriot Coal’s Exit Financing

Patriot Coal announced that the U.S. Bankruptcy Court for the Eastern District of Missouri has confirmed the company’s plan of reorganization. Patriot said it will close on its exit financing, complete the rights offerings and emerge from Chapter 11 reorganization on December 18.

In a related story, The Wall Street Journal said Knighthead Capital Management will backstop the rights offering by purchasing up a $100 million of new notes and warrants. Barclays and Deutsche Bank were said by the Journal to be on call to arrange and syndicate the exit financing.

“This marks the final step in Patriot’s financial restructuring,” commented Bennett K. Hatfield, Patriot president and CEO. “We look forward to a new beginning as a well-capitalized company providing a competitive product to the electric utility and steel industries.”

Patriot Coal is a producer and marketer of coal in the eastern United States, with 10 active mining complexes in Appalachia and the Illinois Basin.

To read a related WSJ story, click here.

Previously on abfjournal: Barclays, Deutsche Arrange Patriot Coal Term Loan and ABL, November 13, 2013