Westmoreland Coal ups the total under a credit agreement

Westmoreland Coal (NasdaqGM: WLB) announced Jan. 27 that, effective as of Jan. 22, it has amended its term loan credit agreement with the Bank of Montreal, as administrative agent, to increase Westmoreland’s term loan by $75m, for an aggregate principal term loan amount of $425m.

The amendments to the Credit Agreement were made in connection with Westmoreland’s recently completed acquisition of Ohio producer Buckingham Coal Co. LLC and further provide that the additional $75m term loan will be governed by the terms and conditions of the Credit Agreement.

Colorad-based Westmoreland Coal is the oldest independent coal company in the United States. Westmoreland’s coal operations include sub-bituminous and lignite coal mining in the Western United States and Canada, a char production facility, and a 50% interest in an activated carbon plant. Its power operations include ownership of the two-unit ROVA coal-fired power plant in North Carolina.

On Jan. 1, Westmoreland completed its acquisition of Buckingham Coal, an Ohio-based coal supplier, for a total cash purchase price of $34m, subject to customary post-closing adjustments. Separately, an affiliate of Westmoreland entered into a five-year coal supply agreement with AEP Generation Resources, an unregulated power production subsidiary of American Electric Power (NYSE: AEP), which includes an obligation to purchase a minimum of 5.5 million tons of coal.

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.