According to documents filed with the SEC, Arch Coal has reached an agreement with its securitization financing providers to continue the $200 million trade accounts receivable securitization facility. Pursuant to the amendments, Debtors agreed to a revised schedule of fees payable to the administrator and the securitization financing providers.
The fees set forth in the financing agreements include the following: (i) a letter of credit participation fee payable on each settlement date to each securitization financing provider; (ii) a facility fee payable on each settlement date to each securitization financing provider, in the amount of 0.85% per year of such securitization financing provider’s commitment under the securitization facility remaining the same as under the existing financing agreements and (ii) a letter of credit fronting fee payable on each settlement date to the letter of credit provider (the LC Provider) in the amount of 0.15% per year of the aggregate face amount of the letters of credit outstanding under the securitization facility (remaining the same as under the existing financing agreements).
In the event that a letter of credit is drawn and the LC Provider is not fully reimbursed for the drawn amount, any unreimbursed remainder will be treated as a funded purchase (i.e., a cash advance) under the securitization facility.
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