Arch Coal announced it received the requisite commitments from lenders to amend its credit facility. According to an 8-K dated December 17, 2013, PNC Bank acted as administrative agent.

Upon closing of the amendments to the senior-secured credit facility dated June 14, 2011 on December 17, 2013, the company increased its term loan facility from $1.63 billion to $1.93 billion with the addition of an incremental $300 million term loan B, according to the 8-K.

The amendments would reduce the aggregate revolving credit commitments under the facility from $350 million to $250 million. Further, certain financial covenants would be eliminated for the duration of the credit facility, and the net senior secured leverage ratio would be deferred until June 30, 2015 and significantly relaxed thereafter.

Arch intends to use the net proceeds from the offering of a previously announced 8% senior secured second lien notes due 2019, together with the net proceeds from the term loan B facility and cash on hand, to fund the purchase of its outstanding 8.750% senior notes due 2016 in its previously announced tender offer and consent solicitation and the redemption of any of the 2016 notes that remain outstanding if Arch purchases less than all of the outstanding 2016 notes in the tender offer.

In conjunction with the transactions, Arch plans to reset the amount of dividends on its common stock to $0.01 per share per annum beginning in 2014.

Arch Coal is a coal producer with mining complexes in Wyoming, Colorado, Illinois, West Virginia, Kentucky, Virginia and Maryland.