Patriot Coal said that the bankruptcy court overseeing its Chapter 11 proceedings yesterday approved the company’s DIP facility on an interim basis, giving the company access to $677 million of the financing.
The company did not state when a final hearing on the facility would be held.
As reported, the $802 million DIP facility would be comprised of a “first out” facility consisting of a $125 million asset based revolver (a portion of which would be used to roll up existing direct lending and letter of credit commitments) and a $375 million term loan, and a $302 million “second out” facility into which letters of credit currently outstanding under the company’s existing credit facility would be rolled. Overall, the facility would provide Patriot Coal with $377 million of roll-up financing and $425 million of new money.
The interim approval includes the second-out facility, the entire revolver, and access to $250 million of the term portion. The remaining $125 million of the term loan will become available upon final approval.
As reported, Citibank and Bank of America are administrative agents for the facility, with Citicorp, Barclays Bank, and BofA unit Merrill, Lynch, Pierce, Fenner & Smith serving as arrangers.
The company said it also obtained approval of other first-day motions at yesterday’s hearing in Manhattan. – Alan Zimmerman
Most Recent Comps (available to LCD News subscribers)
|Patriot Coal (First Out DIP ABL RC 1/13)||125.00M||Deal Dossier|
|Patriot Coal (First Out DIP TL 1/13)||375.00M||Deal Dossier|
|Patriot Coal (Second Out DIP 1/13)||302.00M||Deal Dossier|
|Arch Coal (6/12)||2000.00M||Deal Dossier|
|Peabody Energy (HY 11/11)||3100.00M||Deal Dossier|