CONSOL Energy Completes $1.5 Billion Senior Secured Loan Agreement

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May 10, 2010, 08:00 ET

PITTSBURGH, May 10 /PRNewswire-FirstCall/ -- CONSOL Energy Inc. (NYSE: CNX), the leading diversified fuel producer in the Appalachian Basin, has completed a $1.5 billion Senior Secured Credit Agreement, effective May 7, 2010, to replace an existing $1.0 billion facility. The new agreement provides for a syndicated four-year $1.5 billion revolving credit facility. The facility was subscribed at about $1.725 billion.

"This new facility further enhances our financial flexibility by expanding the size of the facility and extending the term to 2014," said William J. Lyons, executive vice president and chief financial officer. "CONSOL has continued to build operational and financial momentum since this facility was last set in June of 2007. The strong response we received from our banking partners shows continued confidence in the company, its strategy and in the fundamentals of the energy sector."

The facility is secured by the assets of the company. Collateral will be provided to the banks and shared equally and ratably with the holders of CONSOL Energy Inc. 7-7/8% bonds maturing in 2012.

Proceeds from the revolving credit facility will be used for general corporate purposes of CONSOL Energy and certain of its subsidiaries.

PNC Bank, National Association, acted as Administrative Agent and Bank of America, N.A., acted as Syndication Agent for the facility. The Bank of Nova Scotia, The Royal Bank of Scotland PLC, and Sovereign Bank acted as Co-Documentation agents. PNC Capital Markets LLC and Bank of America Securities LLC, acted as Joint Lead Arrangers. There are 26 lending institutions in the syndicate.

SOURCE CONSOL Energy Inc.