Alpha Natural Resources completed an accounts receivable securitization program, which is authorized for up to $85 million of funding, according to a release from the company.
Alpha is going to use the facility both for obtaining standby letters of credit and working capital draws. Previously, letters of credit were issued under Alpha's revolving credit facility, which reduced the company's borrowing capacity under that facility. Pittsburgh-based PNC Bank, National Association, is serving as both administrator and letter of credit bank.
"This facility provides another method of managing Alpha's working capital in a way that provides optimum benefits to the company," said Eddie Neely, Alpha's chief financial officer. "Importantly, it also enhances our already strong liquidity position. As of the end of the first quarter this year, cash balances of more than $705 million and available funds under our revolving credit facility put our total liquidity at over $1 billion."
Last month, Alpha also received an upgrade to 'BB-' on both its corporate credit rating and senior secured credit facilities from Standard & Poor's, reflecting the company's strong liquidity position.