Daily News: August 26, 2013

Foresight Energy Closes New $1.55B Financing


Foresight Energy announced that it completed a $1.55 billion financing including a $500 million secured revolving credit facility due August 2018; a $450 million secured term B loan due August 2020; and a private offering of $600 million aggregate principal amount of 7.875% senior notes due 2021 by the company and Foresight Energy Finance Corporation.

The proceeds from this transaction will be used to refinance existing indebtedness and to fund a distribution to the Company’s owners. The financing provides the company with increased liquidity and an enhanced debt maturity profile as it completes development of a fourth longwall mine in early 2014.

The issuers also announced the settlement of their previously announced cash tender offer and consent solicitation with respect to any and all of their outstanding $600 million aggregate principal amount of 9.625% senior notes due 2017.

Morgan Stanley and Citigroup Global Markets acted as joint dealer managers and solicitation agents and Global Bondholder Services Corporation acted as the tender agent and information agent for the tender offer and consent solicitation.

Foresight Energy is a producer of thermal coal with over three billion tons of coal reserves in the Illinois Basin.