WestLB Closes Credit Facility for Mepco Companies' Expansion
WestLB announced today that it acted as Sole Bookrunner, Lead Arranger
and Administrative Agent on USD 120 million of senior secured credit
facilities for the expansion of Mepco Holdings (Mepco) coal operations.
The financing will support the acquisition of Mepco Companies' existing
coal operations by First Reserve Corporation, the largest private equity
firm specializing in the energy industry; will refinance existing
debt, and fund capital expenditures for a mine expansion project
located in Monongalia County, West Virginia and Greene County,
Pennsylvania.
The financing includes a USD 58 million Term Loan B Facility as well
as a USD 42 million Expansion Term Loan Facility, and a USD 20
million working capital facility.
"WestLB is pleased to be First Reserve's bank of choice to help fund
the expansion of Mepco's coal facility," said Manish Taneja, Global
Head of Loan Syndications.
The Mepco Companies are currently producing approximately two million
tons per year, and with the expansion, Mepco will reach production
capacity of four million tons per year. This incremental production
of approximately two million tons, as a result of the mine expansion,
will be contracted for 20-years under a fixed price contract with
Longview Power; a supercritical cycle pulverized coal-fired power
generating facility currently under construction. Longview is
located adjacent to Mepco's operations (with the coal to be supplied
by conveyor) and is scheduled to be operational by 2011. Mepco will
have total fixed priced contracts covering approximately 90 percent
of coal sales through 2020.
"WestLB has a wide range of expertise in the energy sector," said Tom
Murray, Global Head of Energy. "In addition to sole lead arranging
this financing, we also acted as joint bookrunner on the USD 1.1
billion Longview Power Plant transaction, to where the coal is being
supplied."
About WestLB Capital Markets
WestLB develops sophisticated structured solutions through a team of
highly experienced investment banking and capital markets
professionals. WestLB has a long-standing presence in the corporate,
structured and asset-backed financing sectors supporting clients'
needs with capital commitments, advisory services and innovative
financing solutions. The bank's global relationships, coupled with
its unique understanding of local economies, industries and cultures,
help WestLB bankers consistently deliver high quality advice and
service.
About WestLB
WestLB AG is one of Germany's leading financial services providers
and offers the full range of products and services of a universal
bank, focusing on lending, structured finance, capital market and
private equity products, private banking, asset management,
transaction services and real estate finance. WestLB has total
assets of EUR 280 billion, as of September 30, 2007. For more
information, please visit www.westlb.com.
In the United States, certain securities, trading, brokerage and
advisory services are provided by WestLB's wholly owned subsidiary
WestLB Securities Inc., a registered broker-dealer and member of the
NASD and SIPC.
(NOTE: 3rd Quarter Earnings Release/as of September 30, 2007
distributed to public on December 6, 2007)