Sept 3 - Walter Energy (WLT.N) said its lenders extended their credit agreement by about two years, but hiked interest rates and reduced the borrowing limit.
As a result of the amendment, the metallurgical coal producer said the size of the facility was reduced to $300 million and will mature in July 2012, down from its previous $350 million facility due October 2010.
Under the original terms of the 2005 facility, the limit was scheduled to be reduced to $250 million by the end of this year, the company said.
Pricing on the facility rose 100 basis points and capital expenditure and senior secured leverage ratio covenants were eliminated as part of the amendment, the company said in a statement.
The credit facility can be increased to $425 million subject to certain conditions, said the company, formerly known as Walter Industries Inc.
Banc of America Securities and SunTrust Robinson Humphrey acted as joint lead arrangers and joint book runners in a 13-bank syndicate, Walter said.
Shares of the company closed at $55.47 Thursday on the New York Stock Exchange.
As a result of the amendment, the metallurgical coal producer said the size of the facility was reduced to $300 million and will mature in July 2012, down from its previous $350 million facility due October 2010.
Under the original terms of the 2005 facility, the limit was scheduled to be reduced to $250 million by the end of this year, the company said.
Pricing on the facility rose 100 basis points and capital expenditure and senior secured leverage ratio covenants were eliminated as part of the amendment, the company said in a statement.
The credit facility can be increased to $425 million subject to certain conditions, said the company, formerly known as Walter Industries Inc.
Banc of America Securities and SunTrust Robinson Humphrey acted as joint lead arrangers and joint book runners in a 13-bank syndicate, Walter said.
Shares of the company closed at $55.47 Thursday on the New York Stock Exchange.
