Daily News: December 4, 2017

PNC Reduces CNX Credit Facility to Support CONSOL Spinoff


CNX Resources completed the spin-off of CONSOL Energy, formerly CONSOL Mining, creating two publicly-traded companies: a natural gas exploration and production (E&P) company and a coal company. November 29, 2017 marked the first day of post-separation trading in each company’s common stock on the New York Stock Exchange.

According to a related 8-K filing, to complete the spinoff, CNX downgraded its existing credit agreement from $2.5 billion to $2 billion and capped its revolving credit facility at $1.5 billion. PNC Bank served as administrative agent for the transaction.

“Today’s historic announcement is the culmination of a strategy over a decade in the making. Our objective was to once again transform a 150-year old institution, which owns and operates the best natural gas and coal assets in the world. The E&P company is now one of the premiere pure-play natural gas E&P companies, while the coal company holds some of the best coal assets in the world and is positioned to dominate the coal space for years to come,” said Nicholas J. DeIuliis, CNX Resources’ president and CEO.

Under the terms of the separation, CNX stockholders received a distribution of one share of common stock of the newly named CONSOL Energy for every 8 shares of the company’s common stock held as of the close of business on November 15, 2017. No fractional shares of CONSOL Energy were issued and stockholders received cash in lieu of fractional shares. CNX’s stockholders retained their shares of company common stock, but as a result of the name change, these shares now represent shares of CNX Resources Corporation.

In connection with the distribution, the company changed its name from CONSOL Energy to CNX Resources.