International Coal Group, Inc. Completes New $125 Million Senior Secured Asset Based Loan Facility

SCOTT DEPOT, W.Va., Feb. 23 /PRNewswire-FirstCall/ -- International Coal Group, Inc. (NYSE: ICO) (“ICG” or the “Company”) announced today that its wholly-owned subsidiary, ICG, LLC (the “Borrower”), has entered into a new four-year $125 million senior secured asset-based loan facility (the “ABL Loan Facility”) which refinances its existing $100 million credit facility previously set to mature in June 2011. The new ABL Loan Facility is available for loans and the issuance of letters of credit. Subject to certain conditions, at any time prior to maturity, the Borrower may elect to increase the size of the facility up to $200 million. The new ABL Loan Facility has a maturity date of February 22, 2014.

The obligations of the Borrower under the ABL Loan Facility are guaranteed jointly and severally by the Company and all of the Company’s current and future wholly-owned subsidiaries and it is secured by a first-priority security interest on substantially all of the Company’s assets.  

Interest on the borrowings under the ABL Loan Facility is payable, at the option of the Borrower, at either a “Base Rate” or a “LIBOR rate,” in each case plus an applicable margin.  Borrowings under the ABL Loan Facility may be used for general corporate purposes of the Company and its subsidiaries, including capital expenditures, subject to certain limitations.

In connection with the new ABL Loan Facility, GE Capital Markets, UBS Securities LLC  and Morgan Stanley Senior Funding acted as Co-Bookrunners and Co-Lead Arrangers. General Electric Capital Corporation is acting as Administrative Agent and Co-Collateral Agent. UBS AG, Stamford Branch, will act as Co-Collateral Agent and Letter of Credit Issuer issuing bank.

The Company’s Chief Financial Officer, Bradley W. Harris, stated, “The new asset-based loan facility accomplishes several of the Company’s goals.  It increases our credit facility by $25 million, provides the further ability to increase it to $200 million, refinances our prior credit facility that was due to expire in mid-2011, and provides greater flexibility to operate our business.”

General Information

ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin.  The Company has 13 active mining complexes, of which 12 are located in Northern and Central Appalachia and one in Central Illinois.  ICG’s mining operations and reserves are strategically located to serve utility, metallurgical and industrial customers domestically and internationally.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements within the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995 and may involve a number of risks and uncertainties. We have used the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project” and similar terms and phrases, including references to assumptions, to identify forward-looking statements. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to various risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: market demand for coal, electricity and steel; availability of qualified workers; future economic or capital market conditions; weather conditions or catastrophic weather-related damage; our production capabilities; consummation of financing, acquisition or disposition transactions and the effect thereof on our business; a significant number of conversions of our Existing Convertible Notes prior to maturity; our plans and objectives for future operations and expansion or consolidation; our relationships with, and other conditions affecting, our customers; availability and costs of key supplies or commodities such as diesel fuel, steel, explosives and tires; availability and costs of capital equipment; prices of fuels which compete with or impact coal usage, such as oil and natural gas; timing of reductions or increases in customer coal inventories; long-term coal supply arrangements; reductions and/or deferrals of purchases by major customers; risks in or related to coal mining operations, including risks related to third-party suppliers and carriers operating at our mines or complexes; unexpected maintenance and equipment failure; environmental, safety and other laws and regulations, including those directly affecting our coal mining and production, and those affecting our customers’ coal usage; ability to obtain and maintain all necessary governmental permits and authorizations; competition among coal and other energy producers in the United States and internationally; railroad, barge, trucking and other transportation availability, performance and costs; employee benefits costs and labor relations issues; replacement of our reserves; our assumptions concerning economically recoverable coal reserve estimates; availability and costs of credit, surety bonds and letters of credit; title defects or loss of leasehold interests in our properties which could result in unanticipated costs or inability to mine these properties; future legislation and changes in regulations or governmental policies or changes in interpretations or enforcement thereof, including with respect to safety enhancements and environmental initiatives relating to global warming or climate change;  impairment of the value of our long-lived and deferred tax assets; our liquidity, including our ability to adhere to financial covenants related to our borrowing arrangements; adequacy and sufficiency of our internal controls; and legal and administrative proceedings, settlements, investigations and claims and the availability of related insurance coverage.

You should keep in mind that any forward-looking statement made by us in this press release or elsewhere speaks only as of the date on which the statements were made. See also the “Risk Factors” in our 2009 Annual Report on Form 10-K and subsequent filings with the SEC which are currently available on our website at www.intlcoal.com. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us or our anticipated results. We have no duty to, and do not intend to, update or revise the forward-looking statements in this press release, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that any forward-looking statement made in this press release might not occur.

SOURCE International Coal Group, Inc.

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