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US coal producer plans $1.4bn of bond offers, credit facilities

Foresight Energy LP, a Missouri-based coal producer, is offering $425m in bonds and is adding two credit facilities worth a combined $995m.

US-based Foresight Energy LP plans to pay down outstanding debt by raising over $1.4 billion through a bond offer and new credit facilities.

Foresight Energy, a thermal coal producer based in Missouri, has priced its upcoming bond offer on 28 March at a total of $425 million for second lien senior secured notes. The bonds are being offered at 11.5 percent, are due in 2023 and are guaranteed by Foresight Energy’s subsidiary, Foresight Energy Finance Corporation.

The $425 million total price tag is $75 million less than what Foresight Energy previously announced it would offer. However, the energy developer said it has increased by $75 million a five-year term loan now amounting to $825 million. Foresight Energy has also agreed to a $170 million four-year secured credit facility. The company did not disclose the financiers of these credit facilities.

Foresight said it plans to use proceeds from the bond offer and loans to pay down debts from second lien secured notes due in 2021, senior secured notes due in 2017 and other outstanding credit facilities.

Founded in 2006, Foresight Energy operates four mining complexes in Illinois with a production capacity of over 67 million tons of coal per year.