Cloud Peak Energy (CLD) Amends Revolving Facility
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Cloud Peak Energy Inc. (NYSE: CLD) announced that, effective September 9, 2016, its wholly owned subsidiary Cloud Peak Energy Resources LLC (“CPE Resources”) entered into the Second Amendment to Credit Agreement (the “Amendment”) which amends its Credit Agreement, dated as of February 21, 2014, among CPE Resources, the guarantors party thereto, PNC Bank, National Association, as administrative agent and a syndicate of lenders (the “Credit Agreement”).
The primary modifications to the Credit Agreement implemented by the Amendment are:
- Replaced the quarterly EBITDA-based financial covenants that previously required CPE Resources to (a) maintain defined minimum levels of interest coverage and (b) comply with a maximum net secured debt leverage ratio, with a new monthly minimum liquidity covenant that requires CPE Resources to maintain liquidity of not less than $125 million as of the last day of each month.
- Reduced the maximum borrowing capacity under the Credit Agreement to $400 million, from the previous maximum capacity of $500 million.
- Revised the permitted debt covenant and permitted lien covenant to permit the issuance of second lien debt in an amount up to $350 million.
- Revised various negative covenants and baskets that would apply to, among other things, the incurrence of debt, making investments, asset dispositions and restricted payments.
- Established a requirement for deposit account control agreements in favor of the administrative agent for certain deposit accounts.
The Amendment did not change the maturity of the Credit Agreement, which remains February 21, 2019.
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