Contura Energy Completes Business Combination With Alpha Natural Resources
[Click image to enlarge]
Contura Energy, Inc., a leading U.S. coal supplier, has closed on the business combination with Alpha Natural Resources Holdings, Inc. (ANR).
“The successful combination of these two sets of highly productive assets, operated by an expanded employee base of nearly 4,500 experienced and talented individuals, greatly enhances Contura’s already robust competitive positioning in both domestic and international coal markets,” said Kevin Crutchfield, chief executive officer of Contura Energy.
“Our near-term focus now turns to delivering on the significant synergies expected through this transaction and creating additional value for Contura’s increasing number of shareholders,” added Crutchfield.
The combined company will continue to operate as Contura Energy and be led by Crutchfield and Contura’s existing management team. The company’s assets are now comprised of a diversified production profile of high-quality, metallurgical and thermal coal mines in Central Appalachia, its efficient longwall thermal coal mine in Northern
Appalachia, one of the largest met coal reserves in the U.S. allowing for near-term organic growth opportunities, and industry-leading export capacity through its 65 percent ownership interest in the world-class Dominion Terminal Associates (DTA) coal export facility located in Newport News, Virginia. On a pro-forma basis for the full-year 2017, the combined entity sold approximately 11.9 million tons of metallurgical coal, making it the largest met coal supplier in the U.S., and 13.1 million tons of thermal coal, excluding sales from divested assets.
The transaction is expected to generate cost synergies in the range of $30 million to $50 million annually, including through coal blending and marketing optimization, as well as purchasing, operating and administrative efficiencies.
The company also said it completed the successful refinancing of the company’s and legacy Alpha’s senior secured credit facilities. Specifically, a new $550 million term loan facility. In addition, the company expanded its asset-backed revolving credit facility (ABL) to $225 million, which matures in April 2022.
The proceeds of the term loan facility will be used to refinance and/or retire the company’s and Alpha’s existing credit facilities, pay related fees, costs and expenses, and for general corporate purposes.
About Contura Energy
Contura Energy is a Tennessee-based coal supplier with affiliate mining operations across major coal basins in Pennsylvania, Virginia and West Virginia. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power.
To stop by Contura Energy’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2018 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
