Daily News: September 21, 2015

Citigroup Global to Arrange $692MM Alpha Natural DIP Financing


Alpha Natural Resources announced, based on a recent hearing, it anticipates a final order to be entered by the U.S. Bankruptcy Court for the Eastern District of Virginia authorizing Alpha to utilize the debtor-in-possession (DIP) financing package the company secured in connection with its Chapter 11 filing.

“Finalizing this package with the support of both our secured lenders and the unsecured creditors committee represents a significant milestone in our restructuring,” said Alpha chief financial and strategy officer, Phillip Cavatoni. “We believe that, in concert with existing liquidity, this package provides the financial flexibility needed to navigate the Chapter 11 process.”

According to bankruptcy court documents, Alpha Natural Resources owed its pre-petition lenders $1,055.9 million as of the date of the filing.

The 18-month financing package provides for up to approximately $692 million in financing, and is led by a group composed of the company’s first and second lien lenders. According to bankruptcy court documents,
Citibank is shown as acting in the capacity of administrative agent for the term lenders and Citicorp North America was listed as the administrative agent for the “second out secured parties.” Citigroup Global Markets is shown as the lead arranger for the DIP lenders.

Alpha and certain of its wholly-owned subsidiaries filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code on August 3, 2015.

Bristol, VA-based Alpha Natural Resources is one of the largest and most regionally diversified coal suppliers in the U.S. With affiliate mining operations in Virginia, West Virginia, Kentucky, Pennsylvania and Wyoming, Alpha supplies metallurgical coal to the steel industry and thermal coal to generate power to customers on five continents.