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October 9, 2018 – Westmoreland Coal Company requested Court approval for debtor-in-possession (“DIP”) financing [Docket No. 17] in respect of which Wilmington Savings Fund Society, FSB is to serve as collateral agent, the “DIP Facility Agent”. The DIP financing motion explains, “The DIP facility and the loan commitment for the WLB Debtors is to enter into a senior secured debtor-in-possession term credit facility in the maximum amount of $110,000,000, consisting of a term loan on the terms and conditions set forth in the DIP Orders and the DIP Loan Documents. Approximately $90 million of the proceeds will refinance the amount outstanding under the Bridge Loan Facility, and the remainder will be used to fund working capital and other general corporate purposes during the Chapter 11 Cases.” 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%.
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