Alpha eliminates the remaining Ter – GuruFocus.com

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The company also provides updates on the share buyback program and combined $56.6 million in collateral versions

BRISTOL, Tenn., June 6, 2022 /PRNewswire/ — Alpha Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier of metallurgical products to the steel industry, today announced several positive financial updates, including the elimination of remaining balance of its term loan.

Elimination of long-term debt

On June 3, 2022Alpha made a voluntary prepayment of $99.4 million on its term loan, which eliminated all remaining principal and repaid the loan in full.

“Today, we are pleased to report that Alpha’s term loan has been fully repaid, eliminating our long-term debt,” said David Stetson, President and CEO of Alpha. “As we’ve mentioned regularly over the past quarterly calls, this is a critical milestone for our company and an important step in strengthening Alpha’s balance sheet. In just under a year , more $550 million was paid to eliminate Alpha’s long-term debt load, allowing us to extinguish the term loan and its carrying costs two years before maturity. »

Share buyback program

As previously announced, Alpha’s Board of Directors has authorized a $600 million share buyback program. From June 3the company acquired 860,934 common shares at a price of $126.3 million.

Collateral release

As part of Alpha’s improved financial situation, the company received a reduction of $40.1 million in coverage requirements related to its self-insured workers’ compensation at certain locations in West Virginia.

In addition, as part of the review and negotiation of the routine bonding program, the company received a $16.5 million reduction of bonding requirements, while ensuring multi-year visibility on the terms of the bonding program.

president and chief financial officer of Alpha, Andy Eidsonclarified today’s financial announcements: “These collateral releases, which are in the form of letters of credit, directly increase our ABL availability, and therefore our financial liquidity, by almost $57 million. Combined with the final payment to eliminate Alpha’s term loan, these developments represent further de-risking of our balance sheet and demonstrate our commitment to building a resilient business in all markets. Additionally, we are pleased to provide an update on the progress of our share buyback program, which we still believe is the best investment we can make at this stage. We are excited about the direction Alpha is taking and look forward to building on this positive momentum.”

About Alpha Metallurgical Resources

Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers worldwide, high quality reserves and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry. For more information, visit www.AlphaMetResources.com.

Forward-looking statements

This press release contains forward-looking statements. These forward-looking statements are based on Alpha’s expectations and beliefs regarding future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Alpha’s control. Forward-looking statements contained in this press release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Alpha to predict these events or how they may affect Alpha. Except as required by law, Alpha undertakes no obligation and does not intend to update or revise any forward-looking statements contained in this press release or elsewhere after the date of this release. In light of these risks and uncertainties, investors should keep in mind that the results, events or developments discussed in the forward-looking statements made in this press release may not occur.

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SOURCEAlpha Metallurgical Resources, Inc.

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