(Adds company statement, background, paragraphs 3-9)
By Allison Martell
June 14 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
(Reporting by Allison Martell; Editing by David Gregorio)