Core Natural Resources, Inc. (NYSE: CNR) has recently completed a successful refinancing effort, increasing the total bond amount from $276 million to $307 million. The company has established a 10-year initial term for the now unsecured bonds, which mature in March 2035. Despite the current higher interest rate environment, Core managed to reduce the weighted average interest rate to 5.3%.
Mitesh Thakkar, Core's president and chief financial officer, expressed gratitude for the strong support of their financing partners and the states of Pennsylvania, Maryland, and West Virginia in facilitating these transactions. The successful refinancing is seen as a testament to Core's operating portfolio strength, enhanced diversification, and substantial cash-generating capabilities across various market environments.
The transactions saw participation from thirty-nine institutional investors, which were more than six times oversubscribed on a cumulative basis. Jefferies LLC and KeyBanc Capital were co-lead bookrunners on the transactions, with support from B.Riley Securities, Goldman Sachs, PNC Capital Markets LLC, and Texas Capital Markets.
Core Natural Resources, Inc., formed in January 2025 through the merger of Consol Energy and Arch Resources, is a world-class producer and exporter of high-quality, low-cost coals. The company operates a best-in-sector portfolio, including the Pennsylvania Mining Complex, Leer, Leer South, and West Elk mines, with ownership interests in two marine export terminals.
The successful refinancing of these bonds, representing the majority of Core's debt, is believed to have established a strategic capital structure that provides significant financial flexibility while supporting the company's long-term growth prospects. The market has reacted to these announcements by moving the company's shares -1.4% to a price of $77.45. For the full picture, make sure to review Core Natural Resources's 8-K report.
