Alpha Natural Resources closes $692 million DIP financing package

Client(s) Alpha Natural Resources Inc.

Jones Day represented Alpha Natural Resources Inc. ("ANR"), a large diversified coal supplier, and substantially all of its subsidiaries in connection with their $692 million debtor-in-possession superpriority secured financing arrangement. The financing arrangement provides ANR with a $300 million term loan, including a $110 million letter of credit sub-facility; a bonding accommodation facility in an amount up to $100 million, permitting the issuance of cash backed letters of credit or granting of superpriority administrative claims; capacity for up to a $200 million asset based revolving credit facility, and contemporaneous pay down of up to $100 million of term loan; and the ability to roll up $192 million of its prepetition letters of credit for issuing banks that agree to renew their letters of credit during the pendency of the case.