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Capital Southwest Supports Refinancing of Blaschak Coal Corp.

August 15, 2018, 08:15 AM
Filed Under: Mining

Capital Southwest Corporation, an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced that it supported Milestone Partners III, L.P.’s (“Milestone”) recent financing of Blaschak Coal Corp. (“Blaschak”), a leading domestic miner, preparer and marketer of Pennsylvania anthracite coal.  Capital Southwest invested an $8.5 million split lien term loan to refinance existing senior debt and provide growth capital and is the sole administrative agent and lender on the split lien facility.

"We are pleased to partner with Blaschak and Milestone in this transaction," said Douglas Kelley, Managing Director of Capital Southwest.  “Anthracite is a high grade of coal with energy content and purity characteristics that allow it to sell into unique end markets relative to the broader coal industry, with a majority of the Company’s revenue derived in the rural residential heating market in the Northern U.S. and Canada.”  Matt Darrah, Principal of Capital Southwest said, “Blaschak’s strong market position, the long-term stability of the company’s end markets and the Company’s significant asset base, allowed us to offer a creative financing solution that provides increased operating flexibility to the company in a debt facility with collateral coverage for Capital Southwest.″

Blaschak is a domestic miner, packager, and distributor of anthracite coal used primarily in home heating and other niche applications. Blaschak is a market leader and one of the few fully integrated U.S. anthracite companies with a large reserve base, multiple mines and preparation plants, a bagging plant, both rail and truck loading facilities, and extensive marketing operations serving a wide range of end markets, including home heating, steel and water filtration.  The Company’s high quality anthracite coal is used in applications that require high-purity, high-heat, smokeless burn and is sold under its Saint Nicholas brand. Blaschak distributes through a diverse dealer and distribution network across the United States and Canada.

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