Walter Energy (TSX:WLT, StockForum), a Birmingham Alabama-based firm engaged in mining and exporting metallurgical coal for the steel industry with reserves in the United States, Canada and the United Kingdom, announced today that the company had priced two offerings of its senior secured notes.
According to the news release, the company's first private offering of $200 million aggregate principal amount of senior secured notes with a coupon of 9.500% per annum was increased from the original $100 million senior secured notes announced yesterday and due 2019.
The company also announced the pricing of a second private offering of $350 million aggregate principal amount of 11.0%/12.0% senior secured second lien PIK toggle notes due 2020.
Walter Energy has planned to utilize the net proceeds from the aforementioned transactions to repay, in full, its term loan A under its credit facility, along with increasing its liquidity, paying fees and related expenses.
Walter Energy was in the news recently when the company originally announced its private offerings of senior secured notes yesterday.
Shares dropped 14.34% on the news to $8.78 per share.
Currently there are 62.6m outstanding shares with a market cap of $549.5 million.