Foresight Energy LP announced March 30 that its wholly owned subsidiaries, Foresight Energy LLC and Foresight Energy Finance Corp., are soliciting consents from holders of their outstanding 7.875% Senior Notes due 2021 to approve amendments related to a deal to be acquired by fellow coal producer Murray Energy.
The amendments are to the indenture relating to the notes to: permit Foresight to incur up to $1,050 million of secured debt pursuant to its credit agreement from and after the Effective Time; and amend the definition of “Qualifying Owners” to allow Murray Energy and its affiliates to acquire an 80% voting interest in Foresight Energy GP LLC, the general partner of Foresight Energy LP, without triggering a “Change of Control” as defined in the Indenture, and to further modify the definition of “Qualifying Owners” to remove the persons currently listed therein so that they will not constitute Qualifying Owners following the Acquisition for purposes of determining whether or not a Change of Control has occurred.
In addition, Foresight Energy announced March 30 that it and Murray Energy have reached an agreement with the holder of greater than a majority in aggregate principal amount of the notes, pursuant to which such holder has agreed to consent with respect to all of its notes. Accordingly, Foresight Energy has commenced the consent solicitation in order to offer the Consent Payment to all holders of the notes.
The consent solicitation will expire at 5:00 p.m., New York City time, on April 1 (such date and time, as the issuers may extend from time to time, the “Expiration Time”).
Murray Energy and Foresight Energy GP (FEGP) announced March 15 that Murray Energy and Foresight Reserves LP (the owner of FEGP) have entered a definitive agreement for a Murray partial buy of Foresight. Under this transaction, Murray Energy will acquire a controlling interest in Foresight Energy LP and FEGP to create what its backers call the premier coal mining company in the U.S., controlling over 9 billion tons of coal reserves.