Core Natural Resources, a leading producer of coal, completed the refinancing of tax-exempt bonds previously issued by CONSOL Energy and Arch Resources – the two companies that merged to form Core Natural Resources in January 2025.
As part of this refinancing effort, Canonsburg-based Core increased the total bond amount from $276 million to $307 million. It also established a 10-year initial term for the now unsecured bonds, which mature in March 2035. In addition, it improved flexibility relative to the prior bonds.
Overall, it reduced the weighted average interest rate to 5.3% despite today’s substantially higher interest rate environment.
“We greatly appreciate the strong support of our financing partners and the states of Pennsylvania, Maryland, and West Virginia, which helped facilitate these important transactions,” Mitesh Thakkar, Core’s president and chief financial officer, said. “This successful refinancing underscores once again the strength of Core’s operating portfolio; the value of its greatly enhanced diversification and scale; and the power of its substantial cash-generating capabilities across a wide range of market environments. With the successful refinancing of these bonds, which represent the vast majority of Core’s debt, we believe we have built a smart and strategic capital structure that furnishes tremendous financial flexibility while supporting the company’s long-term growth prospects.”
Some 39 institutional investors participated in the transactions, which were more than six times oversubscribed on a cumulative basis.
Jefferies and KeyBanc Capital were co-lead bookrunners on the transactions. B. Riley Securities, Goldman Sachs, PNC Capital Markets, and Texas Capital Markets also provided support.
Core Natural Resources is a producer and exporter of high-quality, low-cost coals, including metallurgical and high calorific value thermal coals. The company’s portfolio includes the Pennsylvania Mining Complex, Leer, Leer South, and West Elk mines.