Patriot Coal announced that the company is preparing to commence syndication of a $250 million term loan facility and a $125 million asset-backed revolving loan facility.
Barclays will serve as lead left arranger and bookrunner for the term loan facility, with Deutsche Bank acting as joint lead arranger and bookrunner. Deutsche Bank will serve as left lead arranger and bookrunner for the asset-backed revolving loan facility, with Barclays acting as joint lead arranger and bookrunner.
The company expects to launch the syndication of these facilities on November 14 with the expected closing of the facilities concurrent with Patriot’s emergence from bankruptcy, expected prior to the end of 2013.
Additionally, the company announced that it secured the required consents from its lenders to transfer a portion of the company’s current letter of credit facility into a new $201 million letter of credit facility with a five-year term.
“These exit finance facilities are the last critical step in Patriot’s emergence from bankruptcy, and our lenders’ support is an endorsement of our plan of reorganization,” commented Patriot President and Chief Executive Officer Bennett K. Hatfield. “Funding provided by the credit facilities will enable us to exit from Chapter 11 as a strong, well-capitalized company.”
The financing agreements are subject to typical conditions, including, among others, approval by the Bankruptcy Court, completion of definitive financing documentation and successful syndications in the loan markets.
Previously on abfjournal: Court Approves Patriot Coal to Seek Creditor Nod for Reorganization, November 7, 2013