Oxford Resource Partners Secures $175 Mln in Credit Facilities

Oxford Resource Partners said on Tuesday that it has closed $175 million in new credit facilities. Cerberus Capital Management provided a first lien $75 million term loan and $25 million revolving credit facility while Tennenbaum Capital Partners arranged a second lien $75 million term loan. Evercore Partners served as financial advisor. Headquartered in Columbus, Ohio, Oxford Resource Partners is a producer of steam coal in Northern Appalachia and the Illinois Basin.

PRESS RELEASE

COLUMBUS, Ohio, June 25, 2013 /PRNewswire/ — Oxford Resource Partners, LP (NYSE: OXF) (the “Partnership” or “Oxford”) today announced that it has successfully completed a refinancing of its credit facilities that significantly enhances the Partnership’s financial flexibility and puts it in a stronger position to participate in a coal market rebound.
The Partnership has closed on $175 million of new credit facilities that replace its previous term loan and revolving credit facility, thereby extending the maturity profile of the Partnership’s debt and increasing availability under its revolver. The new facilities, which are secured by substantially all of the assets of the Partnership and its wholly owned subsidiaries, consist of a first lien $75 million term loan and $25 million revolving credit facility arranged by Cerberus Capital Management, L.P., and a second lien $75 million term loan arranged by Tennenbaum Capital Partners, LLC.
Oxford’s President and Chief Executive Officer Charles C. Ungurean commented, “I am pleased that we have closed on these new credit facilities which replace our maturing revolver and term loan credit facility. By extending the maturity profile of our debt and increasing availability under our revolver, we have significantly enhanced our liquidity as we continue to focus on increasing productivity across our operations.”
The net proceeds of the new facilities are being used to retire both the existing revolving credit facility maturing next month and the existing term loan maturing in July 2014, to pay related fees and expenses and for general corporate purposes. The new first lien facility matures in August 2015 with an optional extension to May 2016 if certain conditions are met. The new second lien facility matures in December 2015 with an optional extension to September 2016 if certain conditions are met. Both new financing agreements contain customary covenants, and also a covenant that precludes the Partnership from making any unitholder distributions during the term of the new facilities. Additional details regarding the terms of the new facilities are provided in the Partnership’s Current Report on Form 8-K being filed today with the Securities and Exchange Commission.
Evercore Partners acted as sole financial advisor and placement agent to the Partnership with respect to the new facilities.
About Oxford Resource Partners, LP
Oxford Resource Partners, LP is a low-cost producer of high-value steam coal in Northern Appalachia and the Illinois Basin. Oxford markets its coal primarily to large electric utilities with coal-fired, base-load scrubbed power plants under long-term coal sales contracts. The Partnership is headquartered in Columbus, Ohio.
For more information about Oxford Resource Partners, LP (NYSE: OXF), please visit www.OxfordResources.com. Financial and other information about the Partnership is routinely posted on and accessible at www.OxfordResources.com.
About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P. (“Cerberus”) is one of the world’s leading private investment firms. Cerberus has more than US $20 billion under management invested in four primary strategies: distressed securities and assets, control and non-control private equity, commercial mid-market lending, and real estate-related investments. From its headquarters in New York City and large network of affiliate and advisory offices in the U.S., Europe and Asia, Cerberus has the on-the-ground presence to invest in multiple sectors through multiple investment strategies in countries around the world.
About Tennenbaum Capital Partners, LLC
Tennenbaum Capital Partners™ (“TCP”) is a Los Angeles based, alternative investment management firm focused primarily on middle-market credit opportunities. TCP manages a publicly-traded business development company, TCP Capital Corp. (NASDAQ: TCPC), as well as other funds and accounts. The firm’s investment professionals use their extensive expertise in industry, legal, operational and financial disciplines to successfully execute TCP’s investment strategies. Since its founding, TCP has invested more than US $11 billion in over 250 companies. For more information, please visit: www.tennenbaumcapital.com.