CANONSBURG, Pa., March 31, 2021 /PRNewswire/ -- CONSOL Energy
Inc. (NYSE: CEIX) announced today that it has priced $75 million of tax-exempt solid waste disposal
revenue bonds to be issued through the Pennsylvania Economic
Development Financing Authority (PEDFA). The bonds will have a
30-year maturity and were priced in an initial 7-year term rate
period with an interest rate of 9.0 percent. The bonds will be
subject to a mandatory tender at the end of the initial term rate
period.
"We are very appreciative for the support from PEDFA for our
solid waste disposal project in Greene
County," said Jimmy Brock,
President and Chief Executive Officer of CONSOL Energy Inc. "We are
very proud of creating and supporting hundreds of high-paying jobs
in southwest Pennsylvania and
creating a positive impact on numerous communities across the
state. This project highlights our continued environmental
commitments and support for the economy of Southwest Pennsylvania."
The Company received orders of approximately $170 million, highlighting the strength of our
assets and resulted in a competitive initial fixed interest
rate. The bonds will be secured on a second-priority basis, on
parity with our existing outstanding second lien notes and behind
our senior credit facility, by liens on substantially all of the
assets of the Company and the subsidiary guarantors. It is expected
that the bonds will be issued on or about April 13, 2021, upon completion of customary
closing conditions and deliveries.
"We are very pleased with the strong response to our offering
and support of our financing partners," said Mitesh Thakkar, Chief Financial Officer of
CONSOL Energy Inc. "The oversubscribed offering demonstrates the
confidence in CONSOL's world-class asset base and our strategy.
This successful transaction also is a testament to CONSOL's ability
to continue to access the capital markets, particularly for a
7-year duration financing."
In keeping with the requirements of the tax-exempt issuance, the
proceeds will be used to finance the already ongoing expansion of
the coal refuse disposal areas at the Company's Bailey Preparation
Plant in Graysville, Pennsylvania,
which will support current and future mining at the Pennsylvania
Mining Complex. The Company expects to receive the bond proceeds
over the next two years or so, as qualified work is completed. This
financing does not change the capital expenditure guidance provided
by the Company.
About CONSOL Energy Inc.
CONSOL Energy Inc. (NYSE: CEIX) is a Canonsburg, Pennsylvania-based producer and
exporter of high-Btu bituminous thermal coal and metallurgical
coal. It owns and operates some of the most productive longwall
mining operations in the Northern Appalachian Basin and is
developing a new metallurgical coal mine (the Itmann project) in
the Central Appalachian Basin. CONSOL's flagship operation is the
Pennsylvania Mining Complex, which has the capacity to produce
approximately 28.5 million tons of coal per year and is comprised
of 3 large-scale underground mines: Bailey, Enlow Fork, and Harvey.
The company also owns and operates the CONSOL Marine Terminal,
which is located in the port of Baltimore and has a throughput capacity of
approximately 15 million tons per year. In addition to the ~658
million reserve tons associated with the Pennsylvania Mining
Complex and the ~21 million reserve tons associated with the Itmann
project, the company also controls approximately 1.5 billion tons
of greenfield thermal and metallurgical coal reserves located in
the major coal-producing basins of the eastern United States. Additional information
regarding CONSOL Energy may be found at www.consolenergy.com.
Contacts:
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Investor:
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Nathan Tucker, at
(724) 416-8336
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nathantucker@consolenergy.com
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Media:
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Zach Smith, at (724)
416-8291
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zacherysmith@consolenergy.com
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SOURCE CONSOL Energy Inc.