Walter Energy Said to Set Rate on $1.55 Billion Refinancing Loan

Walter Energy Inc., a producer of metallurgical coal, set the rate on $1.55 billion of loans it’s seeking to refinance debt, according to a person with knowledge of the transaction.

The company is proposing to pay interest on a $1.2 billion, six-year term loan at 4.75 percentage points to 5 percentage points more than the London interbank offered rate with a 1 percent minimum on the lending benchmark, said the person, who asked not to be identified because terms are private.

Walter Energy, based in Birmingham, Alabama, is offering the loan to lenders at 99 cents to 99.5 cents on the dollar, the person said.

Morgan Stanley is leading the financing, which includes a $350 million five-year revolving line of credit, and is seeking commitments from lenders by June 19, the person said.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE