Coal producer Walter Energy calls off a debt refinancing effort

Walter Energy (NYSE: WLT) (TSX: WLT), a major international metallurgical coal producer, said June 14 that it will not proceed at this time with a refinancing of a portion of its existing debt.

The company had said in Form 8-K filing dated June 5 that it had begun exploring options to refinance a portion of its existing debt and that the refinancing transactions could include borrowings under a new secured term loan facility, a new revolving credit facility, and an unsecured debt financing. The company planned to use the proceeds to repay outstanding indebtedness and to pay fees and expenses related to the refinancing transactions.

Earlier this year the company completed a closing of a $450m senior note offering that provided enhanced financial flexibility and liquidity. The company said it has no material debt principal payments due until 2015, and it requires no incremental funding at this time. The proposed refinancing would not have raised additional capital.

Walter Energy is a leading, publicly traded “pure-play” met coal producer for the global steel industry with strategic access to high-growth steel markets in Asia, South America and Europe. The company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas. Its coal mining operations are in the United States (Alabama and southern West Virginia), western Canada and the United Kingdom.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.