According to Amendment No. 2 to Fourth Amended and Restated Credit Agreement, Alpha Natural Resources entered into an amendment of its secured credit facility, dated as of May 7, 2014, the lenders party thereto and Citicorp North America as administrative agent and collateral agent.
The credit agreement amendment, among other changes, suspends the interest coverage ratio until the first quarter of 2016 and replaces the senior secured leverage ratio with a first lien senior secured leverage ratio. The amendment also reduces the size of the restricted payment basket and extends the minimum liquidity covenant through the end of 2015.
In addition, it increases by $400 million the amount of additional debt permitted to be incurred either pursuant to the accordion feature of the credit agreement or a notes offering and requires the first $800 million of additional debt incurred pursuant to the accordion or a notes offering (including the debt represented by the notes) to be unsecured debt or second lien secured debt.
The effectiveness of the amendment is subject to the issuance of the notes, as well as customary conditions precedent.