Arch Coal Lures Lenders With Coal in Ground: Corporate Finance
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Lenders are allowing Arch Coal Inc. to borrow $1 billion without the typical level of restrictions, helping the company overcome plunging energy prices as it cuts spending after two quarters of cash outflows.
The fourth-largest U.S. producer of coal, saddled with $4.1 billion of debt, will use proceeds of a term loan to refinance obligations and eliminate maturities until 2016 while increasing liquidity. The company is reducing its revolver by $1 billion and loosening restrictions on the existing credit line.