S.A.C. Capital Advisors, L.P, S.A.C. Capital Advisors, Inc, CR Intrinsic Investors, LLC, Sigma Capital Management, LLC, S.A.C. Global Investors LLP, Steven A. Cohen reported a Walter Energy, Inc. shareholding of 1,992,519 shares (3.20% of votes) in a periodic institutional filing.
TIAA-CREF Investment Management, LLC, Teachers Advisors, Inc reported a Walter Energy, Inc. shareholding of 1,757,896 shares (2.81% of votes) in a periodic institutional filing.
Harris Associates L.P, Harris Associates Inc reported a Walter Energy, Inc. shareholding of 3,103,671 shares (5.00% of votes) in a periodic institutional filing.
Walter closed the $500.0M 9.875% senior notes due December 15, 2020 on November 21, 2012, under an indenture with Union Bank, N.A. as trustee, guaranteed by its wholly-owned domestic subsidiaries. This completes the offering priced on November 16; the press release says proceeds will repay credit facility debt, cover fees and fund general corporate purposes. The indenture limits additional debt, dividends, share buybacks, asset sales and liens, and Walter must offer to exchange the notes for registered ones by November 21, 2013.
19 Nov 2012capital raising announcement● NeutralMajor
On November 16, 2012 Walter priced a $500.0M private offering of 9.875% senior notes due 2020, with interest paid June 15 and December 15 starting June 15, 2013, guaranteed by its wholly-owned domestic restricted subsidiaries. It plans to use the net proceeds to repay credit facility debt, pay fees and for general corporate purposes. This is the $500M unsecured notes issue contemplated in the October 2012 credit amendment, and its size meets the amendment's threshold for the covenant and margin changes.
On October 29, 2012 Walter signed a third amendment to its credit agreement that raises interest margins by 1.25-1.50% and changes the leverage and interest coverage covenants. Margins rise a further 0.25% if at least $500M of senior unsecured notes are not issued by April 29, 2013, and Walter gains room to issue up to another $1B of unsecured notes, with at least 50% of proceeds from such offerings used to repay term loans. A 0.25% consent fee is due to consenting lenders. The much higher borrowing costs and repeated covenant changes since August are stated terms; the filing does not give a reason, so any link to business conditions would be inference.
On August 16, 2012 Walter signed a second amendment to its April 2011 credit agreement. It loosens the leverage-ratio test from the quarter ending September 30, 2012, lets Walter count all unrestricted cash against debt (not just $100M), and raises its general investment basket from $150M to $325M. In return, interest margins rise 0.25% once leverage exceeds 3.25:1, and a one-time 0.25% consent fee is due to consenting lenders. Together with the covenant changes, this is a further amendment to the Western Coal financing.
S.A.C. Capital Advisors, L.P, S.A.C. Capital Advisors, Inc, CR Intrinsic Investors, LLC, S.A.C. Global Investors LLP, Steven A. Cohen disclosed a new substantial Walter Energy, Inc. shareholding (5.00% of votes).
Walter's shareholder rights plan, dated April 24, 2009 with Mellon Investor Services, and the related preferred stock purchase rights expired on their own terms on April 23, 2012. The plan is now of no further effect; the filing gives no other reason or new replacement plan.
TIAA-CREF Investment Management, LLC, Teachers Advisors, Inc reported a Walter Energy, Inc. shareholding of 4,863,730 shares (7.81% of votes) in a periodic institutional filing.
TIAA-CREF Investment Management, LLC, Teachers Advisors, Inc reported a Walter Energy, Inc. shareholding of 4,863,730 shares (7.81% of votes) in a periodic institutional filing.
Harris Associates L.P, Harris Associates Inc reported a Walter Energy, Inc. shareholding of 4,323,186 shares (6.90% of votes) in a periodic institutional filing.
On January 20, 2012 Walter and its Canadian borrowers amended the April 2011 credit agreement to raise the amount available to the Canadian borrowers, and the amount borrowable in Canadian dollars, from US$150M to US$275M. No fees were incurred and the total principal that can be borrowed is described as substantially unchanged. This is a small adjustment to the financing set up for the Western Coal purchase.
