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Arch Coal agreement continues $200 million trade accounts facility
By Mark Reccek
Bethlehem, Pa., Jan. 19 – Arch Coal, Inc. said it has reached an agreement with its financing providers to continue its $200 million trade accounts securitization receivable facility, according to an 8-K filed with the Securities and Exchange Commission.
The 8-K said the company has agreed to a revised schedule of fees payable to the administrator and securitization financing providers.
The fees include a letter of credit participation fee, payable on each settlement date to each provider, in the amount of 2.65% per year of the provider's pro rata participation in the letters of credit outstanding; a facility fee, payable on each settlement date to each provider, in the amount of 0.85% per year of the provider's commitment; and a letter of credit fronting fee, payable on each settlement date to the letter of credit provider, in the amount of 0.15% per year of the aggregate face amount of the letters of credit outstanding.
According to the 8-K, if a letter of credit is drawn and the provider is not fully reimbursed for the drawn amount, any unreimbursed remainder will be treated as a funded purchase.
The amendments also eliminate Arch receivable's ability to obtain cash advances and relinquish control over the accounts in the proceeds of outstanding accounts receivable from the sale of coal and sold through the facility, the 8-K added.
Arch Coal, a St. Louis-based coal producer, filed Chapter 11 on Jan. 11 under case number 16-40120.
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