Arch Announces $54 Million Equipment Financing Facility
ST. LOUIS, March 5, 2020 /PRNewswire/ -- Arch Coal, Inc. (NYSE: ARCH) announced today that it recently closed on a $54 million equipment financing facility with an average interest rate of 6.3 percent. The facility amortizes over a period of four years and is tied to equipment at the Leer longwall mine in Taylor County, West Virginia.
"We view this facility as a highly advantageous way to augment our already strong financial position, at very competitive rates," said John T. Drexler, Arch's chief financial officer. "As previously stated, Arch is well-positioned to fund the development of the world class Leer South longwall mine with internally available funds, and this transaction fortifies our cash and liquidity position still further. Given today's uncertain macroeconomic environment, we view this transaction as prudent and well-timed, with an amortizing schedule that fits well with the planned start-up of Leer South, which is expected to boost our cash-generating capabilities significantly."
U.S.-based Arch Coal, Inc. is a top coal producer for the global steel and power generation industries. Arch operates a streamlined portfolio of large-scale, low-cost mining complexes that produce high-quality metallurgical coals in Appalachia and low-emitting thermal coals in the Powder River Basin and other strategic supply regions. For more information, visit www.archcoal.com.
Forward-Looking Statements: This press release contains "forward-looking statements" – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "should," "appears," "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from changes in the demand for our coal by the domestic electric generation and steel industries; from legislation and regulations relating to the Clean Air Act and other environmental initiatives; from competition within our industry and with producers of competing energy sources; from our ability to successfully acquire or develop coal reserves; from operational, geological, permit, labor and weather-related factors; from the Tax Cuts and Jobs Act and other tax reforms; from the effects of foreign and domestic trade policies, actions or disputes; from fluctuations in the amount of cash we generate from operations, which could impact, among other things, our ability to pay dividends or repurchase shares in accordance with our announced capital allocation plan; from our ability to successfully integrate the operations that we acquire; from our ability to complete the joint venture transaction with Peabody Energy in a timely manner, including obtaining regulatory approvals and satisfying other closing conditions; from our ability to achieve expected synergies from the joint venture; from our ability to successfully integrate the operations of certain mines in the joint venture; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. For a description of some of the risks and uncertainties that may affect our future results, you should see the risk factors described from time to time in the reports we file with the Securities and Exchange Commission.
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SOURCE Arch Coal, Inc.