The Firm recently represented BMO Capital Markets and Deutsche Bank Securities in connection with the 144A and Regulation S offering of $425 million aggregate principal amount of 10.75% Senior Secured Notes issued by Westmoreland Escrow Corporation, a wholly owned subsidiary of Westmoreland Coal Company (“Westmoreland”).
The proceeds from the offering will be used primarily to pay the purchase price and related expenses for Westmoreland’s previously announced acquisition of Sherritt International Corporation’s (“Sherritt”) coal mining operations in Canada, to prepay outstanding senior secured notes issued by a subsidiary of Westmoreland, and for working capital. The proceeds will be held in escrow pending the completion of the Sherritt acquisition, which is expected to occur by the end of the first quarter of 2014. In connection with the offering, Westmoreland obtained consents to certain amendments to its previously issued 10.75% Senior Secured Notes, to be effective upon the completion of the Sherritt acquisition.
Westmoreland is the oldest independent coal company in the United States. Westmoreland’s existing coal operations include sub-bituminous coal mining in the Powder River Basin in Montana and Wyoming, and lignite mining operations in Montana, North Dakota and Texas.
The Simpson Thacher team included Rhett Brandon, John Lobrano, Paige Fleming, Tony Rim and Alejandro de Ramon-Laca (Capital Markets); Justin Lungstrum and Mike Vernace (Credit); Adam Wells (Tax); Adeeb Fadil and Noreen Lavan (Environmental); Paul Koppel (Executive Compensation and Employee Benefits); Jennie Getsin (Blue Sky); George Wang (OFAC); and Jonathan Pall (Collateral).