Arch Coal Amends Credit Facility, Closes Senior Note, Term Loan Offerings

Arch Coal, Inc.

today closed on its previously announced $375 million senior unsecured notes and $250 million incremental secured term loan.  Under the terms of the credit agreement, the $250 million incremental term loan will reduce the size of Arch's revolving credit facility to $350 million from $600 million.  The company intends to use the net proceeds from these financings for general corporate purposes.  Following these transactions, Arch has cash and investments of $1.2 billion and total available liquidity of approximately $1.4 billion, on a pro forma basis as of Sept. 30. Separately, Arch successfully amended its senior secured revolving credit facility, relaxing the financial maintenance covenants until Dec. 31, 2015.  Among other revisions, Arch must adhere to a minimum liquidity covenant that requires the company to maintain available liquidity of at least $450 million through Dec. 30, 2015.