November 14, 2017 Read More →

Junk Bond Deal for Murray Energy to Take Over Bowie Resource Partners Falls Through

Wall Street Journal:

Bowie Resource Partners LLC, a Kentucky coal-mining company, pulled a $510 million debt deal Friday as investor sentiment toward high-yield debt became more cautious.

The deal would have paved the way for a takeover of the company by Murray Energy Corp. and new bondholders.

The proposed deal was intended to refinance Bowie debt set to mature in 2020 and would have cashed out Bowie’s current owner, commodity trading firm Trafigura PTE Ltd.

The debt deal was a key condition in a new partnership Bowie planned to form with Murray Energy, to be called Canyon Consolidated Resources. Murray Energy was set to take a 30.5% stake in the company, and new bond investors would’ve gotten a 28.5% stake if the debt deal had gone through.

The decision to pull the plug on the capital raise puts the fate of the Canyon partnership into question.

More:  ($) “Coal Company Bowie Resource Partners Pulls Debt Deal Backing Takeover

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