Walter Energy also announced the pricing of its private offering of $350 million aggregate principal amount of 11-12% Senior Secured Second Lien PIK Toggle Notes due 2020.
Walter Energy will pay interest on the First Lien Notes on April 15 and October 15 of each year, with the next interest payment being due on April 15, 2014.
Walter Energy will pay interest on the Second Lien Notes on April 1 and October 1 of each year, beginning on October 1, 2014.
The notes will be guaranteed by each of Walter Energy's current and future wholly owned domestic subsidiaries, which guarantees any of Walter Energy's indebtedness or any indebtedness of any of Walter Energy's subsidiaries.
Walter Energy intends to use the net proceeds of the offerings to repay in full its term loan under its credit facility, increase its liquidity and pay related fees and expenses.