ST. LOUIS, March 5, 2020 /PRNewswire/ -- Arch Coal, Inc.
(NYSE: ARCH) announced today that it recently closed on a
$54 million equipment financing
facility with an average interest rate of 6.3 percent. The
facility amortizes over a period of four years and is tied to
equipment at the Leer longwall mine in Taylor County, West
Virginia.
"We view this facility as a highly advantageous way to augment
our already strong financial position, at very competitive rates,"
said John T. Drexler, Arch's chief
financial officer. "As previously stated, Arch is
well-positioned to fund the development of the world class Leer
South longwall mine with internally available funds, and this
transaction fortifies our cash and liquidity position still
further. Given today's uncertain macroeconomic environment,
we view this transaction as prudent and well-timed, with an
amortizing schedule that fits well with the planned start-up of
Leer South, which is expected to boost our cash-generating
capabilities significantly."
U.S.-based Arch Coal, Inc. is a top coal producer for the global
steel and power generation industries. Arch operates a
streamlined portfolio of large-scale, low-cost mining complexes
that produce high-quality metallurgical coals in Appalachia and
low-emitting thermal coals in the Powder River Basin and other
strategic supply regions. For more information, visit
www.archcoal.com.
Forward-Looking Statements: This press release contains
"forward-looking statements" – that is, statements related to
future, not past, events. In this context, forward-looking
statements often address our expected future business and financial
performance, and often contain words such as "should," "appears,"
"expects," "anticipates," "intends," "plans," "believes," "seeks,"
or "will." Forward-looking statements by their nature address
matters that are, to different degrees, uncertain. For us,
particular uncertainties arise from changes in the demand for our
coal by the domestic electric generation and steel industries; from
legislation and regulations relating to the Clean Air Act and other
environmental initiatives; from competition within our industry and
with producers of competing energy sources; from our ability to
successfully acquire or develop coal reserves; from operational,
geological, permit, labor and weather-related factors; from the Tax
Cuts and Jobs Act and other tax reforms; from the effects of
foreign and domestic trade policies, actions or disputes; from
fluctuations in the amount of cash we generate from operations,
which could impact, among other things, our ability to pay
dividends or repurchase shares in accordance with our announced
capital allocation plan; from our ability to successfully integrate
the operations that we acquire; from our ability to complete the
joint venture transaction with Peabody Energy in a timely manner,
including obtaining regulatory approvals and satisfying other
closing conditions; from our ability to achieve expected synergies
from the joint venture; from our ability to successfully integrate
the operations of certain mines in the joint venture; and from
numerous other matters of national, regional and global scale,
including those of a political, economic, business, competitive or
regulatory nature. These uncertainties may cause our actual future
results to be materially different than those expressed in our
forward-looking statements. We do not undertake to update our
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by law. For a
description of some of the risks and uncertainties that may affect
our future results, you should see the risk factors described from
time to time in the reports we file with the Securities and
Exchange Commission.
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SOURCE Arch Coal, Inc.