PITTSBURGH, May 10 /PRNewswire-FirstCall/ -- CNX Gas
Corporation (NYSE: CXG), a leading Appalachian producer, has
completed a $700 million Senior
Secured Credit Agreement, effective May 7,
2010, to replace an existing $200
million facility. The new agreement provides for a
syndicated four-year $700 million
revolving credit facility.
"This new facility further enhances our financial flexibility by
expanding the size of the facility and extending the term to 2014,"
said William J. Lyons, executive
vice president and chief financial officer. "CNX Gas has nearly
doubled its proved reserve base and its annual production since
this facility was last set in October of 2005. The strong response
we received from our banking partners shows continued confidence in
the company, its strategy and in the fundamentals of the natural
gas sector."
The facility is secured by the assets of the company. Collateral
will be provided to the banks and shared equally and ratably with
the holders of CONSOL Energy Inc. 7-7/8% bonds maturing in
2012.
Proceeds from the revolving credit facility will be used for
general corporate purposes of CNX Gas and its subsidiaries.
PNC Bank, National Association, acted as Administrative Agent
and Bank of America, N.A., acted as Syndication Agent for the
facility. The Bank of Nova Scotia,
The Royal Bank of Scotland PLC, and Wells Fargo Bank, National
Association acted as Co-Documentation Agents. PNC Capital Markets
LLC and Bank of America Securities LLC acted as Bookrunners and
Joint Lead Arrangers. There are 16 lending institutions in the
syndicate.
SOURCE CNX Gas Corporation