Murray Energy Corp. entered into a transaction support agreement with certain holders of its 11.25% senior secured notes due 2021 and lenders of its existing term loans that will "beneficially impact" its balance sheet and extend upcoming debt maturities.
The supporting noteholders hold roughly 71% in aggregate principal amount of the U.S. coal producer's outstanding 11.25% notes and approximately 61% of the aggregate principal amount of the existing term loans.
The noteholders, along with the lenders, agreed to exchange the 11.25% notes for new 12.00% senior secured notes due 2024, at an exchange rate of $740 in aggregate principal amount of new notes for each $1,000 in aggregate principal amount of 11.25% notes exchanged.
The transaction also approves purchase or other transfer to be offered to all lenders under the credit agreement of the existing term loans for new term loans governed by a new superpriority credit agreement.
The new notes will bear interest at an annual rate of 9% in cash and 3% in payment-in-kind, while the new term loans will mature in 2022, according to a June 4 company release.
The new obligations will be guaranteed by Murray Kentucky Energy Inc. and its subsidiaries and Murray South America Inc. as well as Murray Energy's indirect equity interests in Javelin Global Commodities Holdings LLP.
