Westmoreland Coal Company – Receives Interim Approval for DIP Financing of $20 million

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October 10, 2018 – The Court hearing the Westmoreland Coal Company case has approved the Debtors request to obtain interim debtor-in-possession (“DIP”) financing [Docket No. 92].  The order states, “The Debtors are authorized to execute and deliver the DIP Loan Documents and borrow money under the DIP Facility, on an interim basis, up to an aggregate principal amount not to exceed $20.0 million, and the U.S. Guarantors are hereby authorized to guaranty such borrowings, on the terms set forth in this Interim Order and the DIP Loan Documents; provided that, pending entry of the Final Order, for each $1 drawn by the Debtors under the DIP Facility, $1 of the Bridge Loan Obligations shall convert or ‘roll up’ into DIP Obligations.” The DIP Facility accrues interest per annum at a variable interest rate which is set at WLB’s election at (a) the one-, two-, or three-month London Interbank Offered Rate (“LIBOR”), plus 8.25%; or (b) a base rate (determined with reference to the highest of the prime lending rate, the Federal Funds Rate plus 0.50%, or one-month LIBOR plus 1.00%) plus 7.25%. The Court scheduled a hearing to consider final DIP financing for October 30, 2018.

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