Patriot Coal will borrow $677m from the DIP and use the cash generating from the ongoing operations to operate its business in the ordinary course which include funding post-petition payments to suppliers and meeting other customary business obligations.
The company was also granted an interim authorization to continue paying employee wages, provide health care and other benefits, and use existing cash management to ensure mining operations and customer shipments continue.
The lead arrangers of the DIP are the Citigroup Global Markets, Barclays Bank, and Merrill Lynch, Pierce, Fenner & Smith.
Patriot Coal is a producer and marketer of coal in the eastern United States, with 12 active mining complexes in Appalachia and the Illinois Basin.
