U.S. coal producer Alpha Natural Resources announced that it has amended and restated its secured credit facility, increasing the total amount of the facility from $1.6 billion to $1.725 billion and further enhancing its financial flexibility. According to an 8-K filing, the lender group was led by Citicorp as administrative agent and collateral agent.

The amended and restated credit agreement includes a new $625 million covenant lite senior secured term loan B facility, which matures on May 22, 2020, amortizes in quarterly installments at a rate of 1.0% per year and bears an interest rate at the company’ option of either LIBOR plus a margin of 2.75% (subject to a LIBO floor of 0.75%) or an Alternate Base Rate (ABR) plus a margin of 1.75% (subject to an ABR floor of 1.75%).

The proceeds of the term loan facility will be used to repay the entire $525 million aggregate principal amount of the company’s outstanding obligations under its existing term loan A facility under the existing credit agreement, which matures on June 30, 2016, with the balance used to pay fees and expenses and for general corporate purposes.

The amended and restated credit agreement, among other revisions, provides for an increased senior secured revolving facility from $1 billion to $1.1 billion, which matures on June 30, 2016. Financial maintenance ratios applicable to the revolving facility have also been revised, including relaxation of the interest coverage ratio from 2.25 times to 1.5 times through 2013, from 2.5 times to 1.5 times during 2014 and from 2.5 times to 2.0 times from 2015 through the maturity date of the revolving facility. In addition, the leverage ratio covenant has been removed, while the senior secured leverage ratio of 2.5 times has been extended through the maturity date of the revolving facility. Furthermore, the minimum liquidity requirement, which is applicable to the revolving facility through the end of 2014, has been reduced from $500 million to $300 million.