Alpha Natural said it is a party to a fifth amended and restated credit agreement, dated September 24, 2014, by and among the company, the lenders party thereto and Citicorp as administrative agent and collateral agent.
The company said it borrowed $445 million under the revolving credit facility of the credit agreement. Approximately $138 million of this amount carries an interest rate of 5.25% and matures on June 30, 2016. The remaining approximately $307 million in borrowings carries an interest rate of 6.25% and matures on September 30, 2017, which is the maturity date of the revolving credit facility.
Approximately $126 million of the borrowed amount anticipated the need to replenish funds expended in connection with the previously reported acquisition by one of the company’s subsidiaries of the ownership interest of a third party in Pennsylvania Land Resources Holding Company, a natural gas exploration and production venture. The company intends to utilize the remaining borrowings for general corporate purposes, including for working capital.