BRISTOL, Tenn., June 17, 2019 /PRNewswire/ -- Contura
Energy, Inc. (NYSE: CTRA), a leading U.S. coal supplier, today
announced the completion of its refinancing process through a
previously disclosed five-year, $561.8
million senior secured term loan facility. The new facility
offers Contura more flexibility to return capital to shareholders
by allowing for unlimited restricted payments while the company's
total leverage ratio is 3.0x or less and there is no default.
The interest rate for the new term loan facility is LIBOR plus
700 basis points (bps) for the first two years after closing,
increasing to LIBOR plus 800 bps thereafter, with a LIBOR floor of
2.00%.
Proceeds from the transaction will be used to repay all
outstanding amounts under the company's Amended and Restated Credit
Agreement entered into on November 9,
2018 and to pay related fees, costs and expenses associated
with the new term loan facility.
As previously announced, Contura's board of directors also
recently adopted a capital return program that permits the company
to return to stockholders up to an aggregate amount of $250 million of capital. The capital return
program does not have a fixed expiration date, and returns of
capital may take the form of share repurchases, dividends or a
combination thereof. Any share repurchases may be made from time to
time through open market transactions, block trades, privately
negotiated transactions, tender offers, or otherwise. Any returns
of capital under the program will be at the discretion of the board
and are subject to market and business conditions, levels of
available liquidity, the company's cash needs, restrictions under
agreements or obligations, legal or regulatory requirements or
restrictions, and other relevant factors.
Cantor Fitzgerald Securities is acting as administrative agent
and collateral agent for the new term loan facility.
ABOUT CONTURA ENERGY
Contura Energy (NYSE: CTRA) is a Tennessee-based coal supplier with affiliate
mining operations across major coal basins in Pennsylvania, Virginia and West
Virginia. With customers across the globe, high-quality
reserves and significant port capacity, Contura Energy reliably
supplies both metallurgical coal to produce steel and thermal coal
to generate power. For more information, visit
www.conturaenergy.com.
FORWARD-LOOKING STATEMENTS
This news release includes forward-looking
statements. These forward-looking statements are based on
Contura's expectations and beliefs concerning future events and
involve risks and uncertainties that may cause actual results to
differ materially from current expectations. These factors are
difficult to predict accurately and may be beyond Contura's
control. Forward-looking statements in this news release or
elsewhere speak only as of the date made. New uncertainties
and risks arise from time to time, and it is impossible for Contura
to predict these events or how they may affect Contura. Except
as required by law, Contura has no duty to, and does not intend to,
update or revise the forward-looking statements in this news
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this news release may not
occur.
INVESTOR
CONTACT
investorrelations@conturaenergy.com
Alex Rotonen, CFA
423.573.0396
MEDIA
CONTACTS
corporatecommunications@conturaenergy.com
Rick Axthelm
423.573.0304
Emily O'Quinn
423.573.0369
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SOURCE Contura Energy, Inc.