Company Also Provides Updates on Share Repurchase Program and
Combined $56.6 Million in Collateral
Releases
BRISTOL,
Tenn., June 6, 2022 /PRNewswire/ -- Alpha
Metallurgical Resources, Inc. (NYSE: AMR), a leading U.S. supplier
of metallurgical products for the steel industry, today announced
several positive financial updates, including the elimination of
its remaining term loan balance.
Long-Term Debt Elimination
On June 3, 2022, Alpha made a
voluntary prepayment of $99.4 million
on its term loan, which eliminated all remaining principal and paid
the loan in full.
"Today we are pleased to announce that Alpha's term loan has
been paid in full, eliminating our long-term debt," said
David Stetson, Alpha's chair and
chief executive officer. "As we have mentioned consistently over
the past few quarterly calls, this is a critically important
milestone for our company, and a significant step in further
strengthening Alpha's balance sheet. In just under a year's time,
more than $550 million has been paid
toward eliminating Alpha's long-term debt load, which allowed us to
extinguish the term loan and its carrying costs two years ahead of
maturity."
Share Repurchase Program
As previously announced, Alpha's board of directors authorized a
$600 million share repurchase
program. As of June 3, the company
has acquired 860,934 shares of common stock at a cost of
$126.3 million.
Collateral Release
In connection with Alpha's improved financial position, the
company has received a reduction of $40.1
million in collateral requirements related to its
self-insured workers compensation at certain locations in West
Virginia.
Additionally, as part of routine surety program review and
negotiation, the company has received a $16.5 million reduction in surety collateral
requirements, while securing multi-year visibility on surety
program terms and conditions.
Alpha's president and chief financial officer, Andy Eidson, elaborated on today's financial
announcements: "These collateral releases, which are in the form of
letters of credit, directly increase our ABL availability, and thus
our financial liquidity, by nearly $57
million. Taken together with the final payment to eliminate
Alpha's term loan, these developments represent a further
de-risking of our balance sheet and demonstrate our commitment to
building a company that is resilient through any market.
Additionally, we are pleased to provide an update on the progress
of our share repurchase program, which we still believe to be the
best investment we can make at this point in time. We are excited
about where Alpha is heading, and we look forward to continuing
this positive momentum."
About Alpha Metallurgical
Resources
Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations
across Virginia and West Virginia. With customers across the
globe, high-quality reserves and significant port capacity, Alpha
reliably supplies metallurgical products to the steel industry. For
more information, visit www.AlphaMetResources.com.
Forward-Looking
Statements
This press release includes forward-looking
statements. These forward-looking statements are based on
Alpha's expectations and beliefs concerning future events and
involve risks and uncertainties that may cause actual results to
differ materially from current expectations. These factors are
difficult to predict accurately and may be beyond Alpha's
control. Forward-looking statements in this press release or
elsewhere speak only as of the date made. New uncertainties
and risks arise from time to time, and it is impossible for Alpha
to predict these events or how they may affect Alpha. Except
as required by law, Alpha has no duty to, and does not intend to,
update or revise the forward-looking statements in this press
release or elsewhere after the date this release is issued. In
light of these risks and uncertainties, investors should keep in
mind that results, events or developments discussed in any
forward-looking statement made in this press release may not
occur.
INVESTOR CONTACT:
ALEX ROTONEN
|
MEDIA CONTACT: EMILY
O'QUINN
|
InvestorRelations@AlphaMetResources.com
|
CorporateCommunications@AlphaMetResources.com
|
(423)
956-6882
|
(423)
573-0369
|
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SOURCE Alpha Metallurgical Resources, Inc.