Foresight Energy gets consents to amend 11½% notes, waive default

By Sarah Lizee

Olympia, Wash., Oct. 31 – Foresight Energy LP subsidiaries Foresight Energy LLC and Foresight Energy Finance Corp. said that as of Wednesday they have received needed consents to amend the 11½% second-lien senior secured notes due 2023 and waive some defaults or events of defaults arising under the notes’ indenture, according to an 8-K filing with the Securities and Exchange Commission.

The companies and the notes’ trustee have entered into a supplemental indenture for the amendments and waivers to become effective.

As previously reported, the amendments change a section of the indenture to extend the grace period for payment of interest due on the notes to 90 days from 30 days, and amend another section of the indenture to exclude the fiscal period ended Sept. 30 from the requirement that the issuers hold a publicly accessible conference call to discuss the issuers’ financial information for the relevant fiscal period.

The waivers waive any default or event of default arising as a result of the issuers’ failure to make the interest payment that was due to be paid on Oct. 1, unless the issuers make any payment of such interest that was due to be paid on that date.

The waivers do not waive any obligation of the issuers to make such payment of interest, or the right of any holder to receive such payment.

Written consent of holders of at least a majority of the notes, voting in a single class, was sufficient to adopt the amendments and waivers.

Foresight Energy is a St. Louis-based producer and marketer of thermal coal.

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