Warrior Met Coal Inc. secured the consent of the holders of $350.0 million of its 8% senior secured notes due 2024 for an amendment allowing it to make dividend or distribution payments of up to $350 million to its equity holders that are declared on or before May 15.
The company said March 2 that it will now be able to make the payments without having to comply with the restricted payments covenant in the notes' November 2017 agreement if it can satisfy certain conditions.
Warrior Met will be required to satisfy the leverage ratio requirement, and make sure that the payments are not funded with proceeds of contemporaneous borrowings under its asset-based revolving credit facility.
The amendment will become effective after the company pays $10.00 cash per $1,000 of existing notes. The payment is expected on March 5.
In late February, Warrior Met proposed to offer $125 million of its 8% senior secured notes due 2024 as an addition to the previously issued $350 million of 8% senior secured notes due 2024.
The Alabama-based company announced in October 2017 its plans to pay a special cash dividend of about $600 million to all of its stockholders, to be funded with about $260 million in cash on hand and $350 million raised via an offering of senior secured notes due 2024.
