Alpha Metallurgical Resources refinanced its Asset-Based Revolving Credit Facility, which was previously set to expire in April 2022. The new $155 million facility will mature in December 2024 and includes $125 million committed availability for letters of credit and another $25 million uncommitted on a cash collateralized basis.  Proceeds from this ABL will be the same as the prior facility: issuance of letters of credit, working capital, and incremental liquidity needs.

Citibank is serving as administrative agent and collateral agent on the refinance and BMO and Eclipse are serving as co-collateral agents.

"Continuing our efforts to strengthen the company's balance sheet, we are pleased to close on this refinancing, which amends and extends our ABL until December 2024," said Andy Eidson, Alpha's president and chief financial officer. "Though the total capacity is smaller than our prior ABL, this new facility more than covers our letters of credit requirements and provides additional borrowing capacity. Coupled with our plans to continue substantially reducing our long-term debt level, we believe today's closing is another important step in simplifying our balance sheet and further strengthening the company financially."

Under the terms of the agreement, interest on letters of credit will be 5.25 percent.  Interest on any loans drawn on the new facility would be calculated using the secured overnight financing rate (SOFR).

The terms of the credit facility include customary representations and warranties, customary affirmative and negative covenants, and customary events of default.