Moody's gives Arch Coal notes B3

Moody's Investors Service said it assigned a B3 rating to Arch Coal, Inc.'s new $300 million second-lien senior secured notes maturing in 2019.

At the same time, the agency affirmed all existing ratings, including the B3 corporate family rating. The outlook is negative.

Proceeds, along with the $300 million term loan B add-on, are expected to be used to refinance the company's existing $600 million senior unsecured notes due in 2016.

Moody's said the refinancing transaction will be credit positive as it will extend the maturity profile of the company's debt, enhancing its ability to withstand the prolonged weak conditions in thermal and metallurgical markets. Following the refinancing, Arch Coal's nearest debt maturity will be $1.9 billion in senior secured term loan B, including the new add-on, on May 16, 2018.

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