UPDATE 1-Walter Energy refinancing pulled, shares drop

Fri Jun 14, 2013 4:27pm EDT

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By Allison Martell

June 14 (Reuters) - Walter Energy Inc has pulled a planned $1.55 billion credit refinancing, Reuters Loan Pricing Corp reported on Friday, citing sources, and the coal miner's shares fell after the news.

The Morgan Stanley-led deal was pulled because of market conditions, the report said.

Walter later confirmed in a statement that it was not going ahead with a proposed refinancing, but did not disclose the amount or any other details of the pulled deal.

It said the refinancing would not have raised additional capital, and noted that a $450 million senior note offering had boosted its liquidity earlier this year.

"The company has no material debt principal payments due until 2015, and it requires no incremental funding at this time," it said.

Walter's typically volatile shares dropped sharply after the news, falling 17.2 percent to $12.16 before they were halted pending news on the New York Stock Exchange.

A tough steel market has weighed on metallurgical coal prices, hurting Walter's financial results.

The miner, which has operations in North America and the United Kingdom, recently won a proxy battle against a minor shareholder, British hedge fund Audley Capital Advisors LLP.

Among other things, Audley had criticized Walter for taking on too much debt at punishing interest rates. The company's $450 million senior note offering, which closed in March, had an 8.5 percent coupon. (Reporting by Allison Martell; Editing by David Gregorio)

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