May 24, 2018 - Cloud Peak Energy Inc. (NYSE:CLD), one of the largest U.S. coal producers and the only pure-play Powder River Basin coal company, today announced that, effective May 24, 2018, its wholly owned subsidiary Cloud Peak Energy Resources LLC (“CPE Resources”) entered into an Amended and Restated Credit Agreement among CPE Resources, the guarantors party thereto, PNC Bank, National Association, as administrative agent and a syndicate of lenders (the “Amended Credit Agreement”) which amends and extends the prior credit agreement.

The primary modifications implemented by the Amended Credit Agreement are:

• New three year term extends maturity of the Amended Credit Agreement from February 21, 2019 to May 24, 2021.

• Maximum borrowing capacity under the Amended Credit Agreement was reduced to $150 million, from the previous maximum capacity of $400 million.

• Requires new quarterly financial covenants of (a) a ratio of first lien gross debt under the Amended Credit Agreement, capital leases and the accounts receivable securitization facility (including issued but undrawn letters of credit) to EBITDA (as defined in the Amended Credit Agreement) equal to or less than 1.75 to 1; (b) a ratio of EBITDA less capital expenditures to Fixed Charges (as defined in the Amended Credit Agreement) of not less than 1.15 to 1; and (c) a ratio of funded debt (excluding issued but undrawn letters of credit) less unrestricted cash to EBITDA equal to or less than (i) 4.00 to 1 through June 30, 2019, (ii) 3.50 to 1 from September 30, 2019 to December 31, 2019, (iii) 3.00 to 1 from March 31, 2020 to June 30, 2020 and (iv) 2.50 to 1 from September 30, 2020 to maturity.

• Revised the minimum liquidity covenant to require minimum liquidity of not less than $100 million as of the last day of each fiscal quarter (reduced from the prior requirement to maintain monthly liquidity of not less than $125 million).

Effective May 24, 2018, CPE Resources also entered into an agreement extending the term of its accounts receivables securitization program (the “Receivables Program”) from January 23, 2020 until May 24, 2021. The extension did not change the $70 million maximum size of the Receivables Program. 

Cloud Peak Energy Inc. (NYSE:CLD) is headquartered in Wyoming and is one of the largest U.S. coal producers and the only pure-play Powder River Basin coal company. As one of the safest coal producers in the nation, Cloud Peak Energy mines low sulfur, subbituminous coal and provides logistics supply services. The Company owns and operates three surface coal mines in the PRB, the lowest cost major coal producing region in the nation. The Antelope and Cordero Rojo mines are located in Wyoming and the Spring Creek Mine is located in Montana. In 2017, Cloud Peak Energy sold approximately 58 million tons from its three mines to customers located throughout the U.S. and around the world. Cloud Peak Energy also owns rights to substantial undeveloped coal and complementary surface assets in the Northern PRB, further building the Company’s long-term position to serve Asian export and domestic customers. With approximately 1,300 total employees, the Company is widely recognized for its exemplary performance in its safety and environmental programs. Cloud Peak Energy is a sustainable fuel supplier for approximately two percent of the nation’s electricity. 

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