Daily News: September 25, 2015

Moody’s Assigns B1 Rating to Alpha’s DIP Term Loan


Moody’s Investors Service has assigned a B1 rating to the $300 million debtor-in-possession (DIP) term loan entered into by Alpha Natural Resources as part of the approximately $691 million DIP facilities initiated to provide the company with the necessary liquidity as it goes through the Chapter 11 restructuring process.

Moody’s said the rating primarily reflects the collateral coverage available to the DIP lenders under the term loan and the structural features of the DIP facilities. The term loan is secured by substantially all assets of the company, includes a super priority claim under the Bankruptcy Code, and has upstream secured guarantees from all of Alpha’s material domestic subsidiaries.