News Column

Atlantic Coal In Early Yorkville Repayment

August 8, 2014

Samuel Agini

LONDON (Alliance News) - Atlantic Coal PLC Friday said it has repaid the USD750,000 first tranche SEDA backed loan from YA Global Masters SPV Ltd, known as Yorkville, as well as making an early repayment of the USD500,000 second tranche.

In a statement, the AIM-listed anthracite coal mining company operating in Pennsylvania, US, said there are no further amounts outstanding under the loan agreement with Yorkville due to the repayments.

It said that the loan agreement will remain in place with respect to the undrawn portion of the original commitment amount of up to USD5.0 million during the remainder of the commitment period which ends on July 24, 2016.

At the same time, Atlantic Coal has agreed with Yorkville to bring forward the expiry date for the equity swap arrangement agreed in 2013. It was originally meant to expire on November 30, 2014, but Atlantic Coal and Yorkville have agreed to modify the expiry date to bring the swap agreement to an end now.

Due to the early termination of the swap agreement, there will be no further settlement payments and Yorkville will assume all future equity risk on the Atlantic Coal shares it still has in its possession.

"I am delighted that the recent record production at Stockton has enabled us to repay this facility in advance of the repayment deadline. We appreciate Yorkville's flexibility and support in providing strong capital risk management as part of our management of working capital," Managing Director Steve Best said in a statement.

Atlantic Coal shares were Friday quoted up 12% at 0.140 pence.

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Source: Alliance News

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