Warrior Met Coal Prices $125 Million Offering of Additional 8.00% Senior Secured Notes
BROOKWOOD, Ala.–(BUSINESS WIRE)–Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”) today
announced that it has priced its previously announced private offering
of $125 million in aggregate principal amount of 8.00% Senior Secured
Notes due 2024 (the “New Notes”). The New Notes will be sold at a price
equal to 103.0% of their principal amount, plus accrued interest from
November 2, 2017. The New Notes will be issued as additional notes under
an indenture, dated as of November 2, 2017, pursuant to which Warrior
previously issued $350 million aggregate principal amount of 8.00%
Senior Secured Notes due 2024 (the “Existing Notes”).
The New Notes offering is expected to close on March 1, 2018, subject to
customary closing conditions. Warrior expects to use the net proceeds of
the offering of the New Notes, together with cash on hand accumulated
prior to the declaration of any special cash dividend, to pay one or
more special cash dividends of up to $350 million in the aggregate to
all of its stockholders on a pro rata basis.
The New Notes will be initially guaranteed by each of Warrior’s direct
or indirect wholly-owned domestic restricted subsidiaries that guarantee
the Existing Notes and that are borrowers or guarantors under Warrior’s
Asset-Based Revolving Credit Facility, dated as of April 1, 2016, as
amended.
The New Notes are being offered and sold to persons reasonably believed
to be qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”) and to certain
non-U.S. persons outside the United States pursuant to Regulation S
under the Securities Act.
The New Notes have not been and will not be registered under the
Securities Act or applicable state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state laws.
This press release is neither an offer to sell nor a solicitation of an
offer to buy any of the New Notes or any other securities and shall not
constitute an offer, solicitation or sale in any state or jurisdiction
in which such offer, solicitation or sale is unlawful.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the future
are forward-looking statements. The words “believe,” “expect,”
“anticipate,” “plan,” “intend,” “estimate,” “project,” “target,”
“foresee,” “should,” “would,” “could,” “potential,” or other similar
expressions are intended to identify forward-looking statements.
However, the absence of these words does not mean that the statements
are not forward-looking. These forward-looking statements represent
management’s good faith expectations, projections, guidance or beliefs
concerning future events, and it is possible that the results described
in this press release will not be achieved. Specifically, the Company
cannot assure you that the proposed transactions described above,
including the offering and the payment of any special dividend, will be
consummated on the terms the Company currently contemplates, if at all.
Information concerning these and other factors can be found in the
Company’s filings with the U.S. Securities and Exchange Commission
(“SEC”), including its Annual Report on Form 10-K for the year ended
December 31, 2017 and other reports filed from time to time with the
SEC. The Company’s filings with the SEC are available on the SEC's
website at www.sec.gov.
Any forward-looking statement speaks only as of the date on which it
is made, and, except as required by law, the Company does not undertake
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise. New
factors emerge from time to time, and it is not possible for the Company
to predict all such factors.
Contacts
Warrior Met Coal, Inc.
For Investors:
Dale W. Boyles,
205-554-6129
[email protected]
or
For
Media:
William Stanhouse, 205-554-6131
[email protected]