Warrior Met Coal Inc. proposed to offer $125 million in aggregate principal amount of its 8.00% senior secured notes due 2024.
The new notes are being offered as additional notes under an indenture pursuant to which Warrior previously issued $350 million in aggregate principal amount of 8.00% senior secured notes due 2024.
The company intends to use the net proceeds of the offering of the new notes, together with cash on hand, to pay one or more dividends of up to $350 million in the aggregate to all of its stockholders on a pro rata basis, according to a Feb. 26 release.
The notes will initially be guaranteed by each of Warrior's direct or indirect domestic restricted subsidiaries that are borrowers or guarantors under the company's April 2016 asset-based revolving credit agreement facility and will be offered to qualified institutional buyers within and outside the U.S.
Concurrently, Warrior sought consent from the holders of the existing notes outstanding as of the record date of Feb. 23 to allow the company to make dividend or distribution payments to its equity holders that are declared on or prior to May 15, in an amount not to exceed $350 million.
The consent solicitation will expire March 2.