Cloud Peak Energy amended its credit agreement with a bank group led by PNC as administrative agent, reducing the capacity of the facility to $150 million from $400 million.
In addition to the reduction in the capacity of the facility, the amendment:
- Extends the maturity term from February 21, 2019 to May 24, 2021.
- Requires new quarterly financial covenants of (a) a ratio of first lien gross debt under the amended credit agreement, capital leases and the accounts receivable securitization facility (including issued but undrawn letters of credit) to EBITDA equal to or less than 1.75 to 1; (b) a ratio of EBITDA less capital expenditures to fixed charges of not less than 1.15 to 1; and (c) a ratio of funded debt (excluding issued_x000D_
but undrawn letters of credit) less unrestricted cash to EBITDA equal to or less than (i) 4.00 to 1 through June 30, 2019, (ii) 3.50 to 1 from September 30, 2019 to December 31, 2019, (iii) 3.00 to 1 from
March 31, 2020 to June 30, 2020 and (iv) 2.50 to 1 from September 30,2020 to maturity. - Revises the minimum liquidity covenant to require minimum liquidity of not less than $100 million as of the last day of each fiscal quarter (reduced from the prior requirement to maintain monthly liquidity of not less than $125 million). CPE Resources also entered into an agreement extending the term of its accounts receivables securitization program from January 23, 2020 until May 24, 2021. The extension did not change the $70 million maximum size of the receivables program.
_x000D_
_x000D_
Wyoming-based Cloud Peak Energy is one of the largest U.S. coal producers.
