Walter Energy Seeking Credit Amendment to Refinance Term Loan
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Walter Energy Inc., the coal producer that has lost money for six straight quarters, is negotiating an amendment to its credit agreement to refinance debt, according to a regulatory filing today.
The company, whose ratio of debt to cash flow has increased to 19 times compared with about 3 times in 2011, is seeking lender permission to repay its $407 million loan and refinance the debt with looser restrictions, the filing said. The Birmingham, Alabama-based company is pushing to carry out the transaction without making repayments on the $978 million term loan B as mandated by the current agreement.