Westmoreland Enters into Revolving Credit Facility and Secures Amendments to Note Purchase and Credit Agreement
Westmoreland Coal Company (NasdaqGM:WLB) today announced that it has
entered into a five-year, $20.0 million revolving credit facility with
The PrivateBank and Trust Company as contemplated and allowed for under
the provisions of the indenture governing its outstanding 10.750% Senior
Secured Notes due 2018.
The company also announced that Westmoreland Mining, LLC ('WML?), its
wholly owned subsidiary, has successfully amended its existing Note
Purchase Agreement dated June 26, 2008 and its Amended and Restated
Credit Agreement dated June 26, 2008. The amendments, which are mirrored
in both documents, modify the pension funding requirement and amend the
leverage and debt service coverage ratios, providing the company with
increased flexibility.
'We took the current favorable interest rate environment as an
opportunity to enter into a long term revolving credit facility,? said
Keith E. Alessi, Westmoreland′s Chief Executive Officer. 'While we have
no immediate plans to draw upon the facility, it will provide us with
increased financial flexibility and liquidity. The amendments to the WML
agreements adjust our ratios and funding requirements to more closely
reflect the quarterly fluctuations in our business and the impact of the
current low interest rate environment on pension valuations.
Westmoreland is fortunate to be in a highly liquid position and have
financial flexibility. We appreciate the continuing support of our
lenders and look forward to working with The PrivateBank.?
About Westmoreland Coal Company
Westmoreland Coal Company is the oldest independent coal company in the
United States. The Company′s coal operations include coal mining in the
Powder River Basin in Montana, sub-bituminous mining in Wyoming, and
lignite mining operations in Montana, North Dakota and Texas. Its power
operations include ownership of the two-unit ROVA coal-fired power plant
in North Carolina. For more information, visit www.westmoreland.com.
About The PrivateBank
The PrivateBank delivers customized business and personal financial
services to middle-market companies, as well as business owners,
executives, entrepreneurs and families in all of the markets and
communities we serve. The PrivateBank is part of PrivateBancorp, Inc.,
which, as of March 31, 2012, had 34 offices in 9 states and $12.6
billion in assets. Our website is www.theprivatebank.com.
Westmoreland Coal Company
Kevin Paprzycki, 855-922-6463