The new interest rate for the approximately US$300 million term loan facility is LIBOR plus 275 basis points – reflecting a 50 basis point reduction from its previous level and representing one of the lowest rates in the coal industry. The LIBOR floor remains at 1.0%. There is no change to the maturities as a result of this repricing amendment. The reduction in the interest rate is expected to generate incremental annual cash interest savings of US$1.5 million.
"We are extremely pleased to complete another successful repricing of our senior secured term loan," said John T. Drexler, Arch's Chief Financial Officer. "Through our refinancing and repricing efforts, since 5 October 2016, we have reduced the interest rate on our term loan by a total of 625 basis points and have lowered our interest expense by approximately US$22 million on an annualised basis. We sincerely thank our lenders for their continued confidence and support."
Credit Suisse acted as sole lead arranger on the transaction.
