Arch Coal Launches $250 Million Loan, $350 Million Debt Offering

Photo courtesy of Creative Commons

Arch Coal Inc. said Tuesday it has launched a $250 million term loan and, separately, has begun a private offering of $350 million aggregate principal amount of senior notes due 2019.

The $250 million incremental, senior secured term loan due 2018 is being offered through an uncommitted accordion provision in Arch Coal’s existing revolving credit agreement, the company said. Completion of the new term loan offering would cut the company’s revolving credit facility to $350 million from $600 million.

The company said it plans to use the net proceeds from both the debt offering and the term loan for general corporate purposes. After the offerings are completed, Arch expects to have a cash and marketable securities balance in excess of $1.2 billion.

The St. Louis-based company reported third-quarter net income of $45.8 million on revenue of $1.09 billion. Arch reported profit of $141.7 million on revenue of $4.3 billion in 2011.

Read more on St. Louis Business Journal.


Tags:, ,

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students

Learn more