Westmoreland Coal to secure revolving credit facility

2 July 2012 (Last Updated July 2nd, 2012 18:30)

Westmoreland Coal Company has entered into a five-year, $20m revolving term credit facility with The PrivateBank and Trust Company.

Westmoreland Coal Company has entered into a five-year, $20m revolving term credit facility with The PrivateBank and Trust Company.

The new facility comes under the provisions of the indenture governing its outstanding 10.750% senior secured notes due 2018.

Westmoreland Coal also announced that its wholly owned subsidiary Westmoreland Mining has amended its existing note purchase agreement and its amended and restated credit agreements dated 26 June 2008.

The amendments modify the pension funding requirement and adjust the leverage and debt service coverage ratios.

Westmoreland Coal Company CEO Keith E Alessi said the company has no immediate plans to draw upon the facility but indicated that it will provide 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," said Alessi.

"We appreciate the continuing support of our lenders and look forward to working with The PrivateBank."