Patriot Coal Secures $500 Million Line of Credit
01 November 2007 - 11:35PM
PR Newswire (US)
ST. LOUIS, Nov. 1 /PRNewswire-FirstCall/ -- Patriot Coal
Corporation (NYSE:PCX) today announced that it has entered into a
four-year $500 million line of credit with a syndicate led by Bank
of America. Borrowings under the agreement bear interest at LIBOR
plus 1.75% at current debt levels. The credit agreement is secured
by substantially all of the company's assets and contains customary
covenants. "We are pleased to secure this significant credit
agreement and believe it provides Patriot with the capacity to
execute our strategy," said Patriot President and Chief Executive
Officer Richard M. Whiting. "While Patriot currently is
substantially debt-free, this agreement gives us the flexibility to
pursue acquisitions and for any potential future working capital
needs." About Patriot Coal Patriot Coal Corporation is a leading
producer and marketer of coal in the Eastern United States, with
eight company-operated mines, two joint venture mines and numerous
contractor-operated mines in Appalachia and the Illinois Basin. The
company ships to electric utilities, industrial users and
metallurgical coal customers, and controls approximately 1.2
billion tons of proven and probable coal reserves. The company's
common stock trades on the New York Stock Exchange under the symbol
PCX. Certain statements in this press release are forward-looking
as defined in the Private Securities Litigation Reform Act of 1995.
These statements involve certain risks and uncertainties that may
be beyond our control and may cause our actual future results to
differ materially from expectations. We do not undertake to update
our forward-looking statements. Factors that could affect our
results include, but are not limited to: coal and power market
conditions; the outcome of commercial negotiations involving sales
contracts or other transactions; our dependence on Peabody Energy
in the near future; geologic, equipment and operational risks
associated with mining; supplier performance and the availability
and cost of key equipment and commodities; our ability to recover
coal reserves; labor availability and relations; availability and
costs of transportation; legislative and regulatory developments;
weather patterns affecting energy demand; availability and costs of
competing energy resources; and other risks detailed in the
company's filings with the Securities and Exchange Commission.
DATASOURCE: Patriot Coal Corporation CONTACT: Janine Orf of Patriot
Coal Corporation, +1-314-542-2109 Web site:
http://www.patriotcoal.com/
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