Boston, MA 06/26/2013 (wallstreetpr) – Oxford Resource Partners, LP (NYSE:OXF) has announced that the company has completed refinancing its credit facilities. The company’s financial flexibility has been enhanced after such refinancing. The company finds itself in a stronger position and participates in the coal market.
Oxford has closed its refinancing process by availing $175 million of new credit facilities which will replace its previous term loans and credit facilities which are to mature in the next month. This has helped the company to extend its maturity of debts by availing further new increased credit facilities. The new credit facilities have been secured by substantially all the assets of the company and its wholly owned subsidiaries. The new credit facility has been arranged by Cerberus Capital Management, L.P. and Tennenbaum Capital Partners LLC which consists of a lien of $75 million term loan arranged by both the companies and a $25 million revolving credit facility arranged by the earlier company. The lien facility provided by Cerberus and Tannenbaum will mature in August 2015 and December 2015 respectively. The maturity of the mentioned credit facility can further be extended to May 2016 and September 2016 respectively if certain conditions are met.
The above mentioned financing agreements contain customary terms and conditions. One of the conditions of the agreement precludes the company from making any unitholder distributions during the term of the credit facilities.
Oxford’s President and Chief Executive Officer Charles C. Ungurean has said that they have closed the new credit facilities by replacing their matured credit revolver facility and term loan credit facility. The company has gained a new maturity profile for their credit facilities which has significantly increased their liquidity and can focus on their production activities and operations.
The stock of the company recorded an increase of 26.19% before closing the previous day’s trading session at $2.65 bringing the company’s market capitalization to $55.13 million.
