Subject to market and other conditions, the debt financing is expected to consist of a new $US1.6 billion term loan facility and about $860 million of second-lien senior secured notes.
Murray Energy also plans to amend its existing asset-based lending facility, and to solicit consents to amend certain items in the indentures relating to its existing 9.500% 2nd lien notes, due 2020 and its existing 8.625% 2nd lien notes, due 2021, in each case in order to permit the acquisition and related financing transactions.
In connection with the acquisition, Foresight is expected to refinance its existing term loan and revolving credit facilities with new facilities arranged by Deutsche Bank and Goldman Sachs, with Deutsche Bank acting as lead.
Subject to market and other conditions, the new facilities are expected to consist of a new $625 million term loan facility and a $125 million asset-based revolving credit facility.
If the acquisition closes, it would constitute a change of control event for the existing Foresight 7.875% notes, due 2020, unless the indenture governing those notes is amended. Any notes that are tendered pursuant to a change of control offer are expected to be refinanced with indebtedness of Foresight and its subsidiaries.
Murray Energy has not obtained any financing commitments in connection with the acquisition.
