National Coal Receives Credit Facility Allowing Borrowings of Up to $10 Millionadmin
Central Appalachian coal producer National Coal Corp. received a credit facility with Guggenheim Corporate Funding LLC that provides borrowings of up to $10 million.
On Thursday, National Coal borrowed an initial $5 million to pay costs of the transaction and to fund general operating and working capital needs. National Coal may borrow the remaining $5 million on up to two occasions prior to July 12, 2007.
Under this credit facility, the company’s obligations are secured by a priority senior lien on substantially all of its assets. All amounts under the term loans become due and payable in March 2010.
To avoid default, National Coal must maintain minimum levels of EBITDA and liquidity and not exceed maximum leverage and interest coverage ratios. There also are limitations on additional debt.