ABINGDON, Va., April 8 /PRNewswire-FirstCall/ -- Alpha Natural Resources, Inc. has completed an accounts receivable securitization program, authorized for up to $85 million of funding. Alpha intends to use the facility both for obtaining standby letters of credit and working capital draws. Previously, letters of credit were issued under Alpha's revolving credit facility, which reduced the company's borrowing capacity under that facility. Pittsburgh-based PNC Bank, National Association, is serving as both administrator and letter of credit bank.
"This facility provides another method of managing Alpha's working capital in a way that provides optimum benefits to the company," said Eddie Neely, Alpha's chief financial officer. "Importantly, it also enhances our already strong liquidity position. As of the end of the first quarter this year, cash balances of more than $705 million and available funds under our revolving credit facility put our total liquidity at over $1 billion."
Last month, Alpha also received an upgrade to BB- on both its corporate credit rating and senior secured credit facilities from Standard & Poor's Ratings Services, reflecting the company's strong liquidity position.
ABOUT ALPHA NATURAL RESOURCES
Alpha Natural Resources is a leading supplier of high-quality Appalachian coal to the steel industry, electric utilities and other industries. Approximately 88 percent of the company's reserve base is high Btu coal and 83 percent is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also the nation's largest supplier and exporter of metallurgical coal, a key ingredient in steel manufacturing. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 59 mines supplying 10 coal preparation and blending plants. Alpha and its subsidiaries employ more than 3,600 people.
ANRG
Alpha Natural Resources, Inc.
CONTACT: Ted Pile of Alpha Natural Resources, +1-276-623-2920
Web Site: http://www.alphanr.com/
