Coal producer Murray Energy, which recently announced a deal to take over Illinois coal producer Foresight Energy, said March 24 that it has extended the expiration date for its previously announced solicitations of consents from holders of its outstanding 8.625% Senior Secured Notes due 2021 (the “2013 Notes”) and 9.50% Senior Secured Notes due 2020 (the “2014 Notes).
They are being asked to approve amendments to the indenture relating to the 2013 Notes and the indenture relating to the 2014 Notes and related security agreements. Each Consent Solicitation will now expire at 5:00 p.m., New York City time, on March 25.
Murray Energy announced March 15 that it will acquire a controlling interest in Foresight Energy LP (NYSE: FELP) and a related company to create what its backers call the premier coal mining company in the U.S., controlling over 9 billion tons of coal reserves. Following the closing, Chris Cline, the founder of Foresight Energy, will remain a significant investor in the Foresight Energy companies.
Murray Energy will finance the purchase price with additional indebtedness. To that end, Murray Energy announced March 16 that it expects to finance the acquisition and pay related fees and expenses with the proceeds of debt financing arranged by Deutsche Bank Securities Inc. and Goldman, Sachs & Co., with Deutsche Bank acting as lead, together with cash on hand.