Alpha chief financial officer Frank Wood said the facilities solidified the company’s “robust liquidity position” while improving its future financial flexibility, allowing it to maintain a liquidity-neutral facility position through June 2016 while extending significant liquidity well into 2017.
"As of the end of the second quarter this year, Alpha had total liquidity of approximately $US2.4 billion ($A2.7 billion), consisting of cash, cash equivalents and marketable securities of more than $1.4 billion and nearly $1 billion available under our senior secured credit facility,” he said.
The amended senior secured credit facility will have total availability of $894 million – a 25% reduction for commitments that have been extended through September 30, 2017, with an increased interest rate on borrowings.
Of this amount, $276 million covers non-extending commitments, which will expire on the previous facility maturity date of June 30, 2016.
Thereafter, the total availability under the facility will be $618 million.
“The new accounts receivable securitisation facility provides for up to $200 million in standby letters of credit and working capital draws, subject to certain limitations, secured by trade receivables,” the company said.
“The borrower under the accounts receivable securitisation facility is a special purpose, indirect subsidiary of Alpha Natural Resources.
“Funding under the accounts receivable securitisation facility is expected to be available until September 2018.
“GE Capital Corporate Finance is serving as administrative agent, a lender and a letter of credit lender.
“With both facilities in place, Alpha will have total borrowing and letter of credit capacity of $1.094 billion through June 2016 and $818 million through September 2017.”