Denver, CO (August 26, 2016) - Headwaters MB advised Navajo Transitional Energy Company (NTEC) on a senior secured acquisition financing for the Navajo Mine from BHP Billiton. This coal mine is the sole fuel source for the Four Corners Power Plant. Both the mine and the plant are located on the Navajo Nation.
The Credit Facility consists of a $95 million term loan and a $20 million revolving credit commitment provided by a group of banks led by KeyBank National Association as Administrative Agent and Collateral Agent and Keybanc Capital Markets, Inc. as Coordinating Lead Arranger and Mandated Lead Arranger (collectively KeyBank). The proceeds from the term loan were used to pay the remaining balance of a promissory note issued to BHP Billiton in 2013 for the purchase of Navajo Mine and for fees and expenses of the transaction.
“Securing financing is a milestone for NTEC”, said Clark Moseley, CEO at NTEC. “With the advisement from Headwaters MB, NTEC secured a Credit Facility on our company’s merit without having to seek the financial backing of the Navajo Nation, the first for a tribal enterprise.”
Raymond McCormick, Managing Director at Headwaters MB commented, “securing senior debt in the coal industry today is a challenging task, but with the professionalism of NTEC management and management committee, a successful funding conclusion was obtained under very favorable terms and conditions.” Ricardo Campoy, Managing Director at Headwaters MB continued, “we are excited to have played a role in this growth story and look forward to seeing the Company grow and prosper providing significant wealth creation for the Navajo Nation and its people.”
About Headwaters MB
Headwaters MB is an independent, middle market investment banking firm providing strategic merger and acquisition advice, capital raising and special situations advisory. Named "Investment Bank of the Year" by major organizations for its third consecutive year, Headwaters MB is headquartered in Denver, CO with seven regional offices across the United States and partnerships with 18 firms covering 30 countries. For more information, visit www.headwatersmb.com.
About Navajo Transitional Energy Company
Navajo Transitional Energy Company, LLC, is a wholly owned limited liability company of the Navajo Nation that was authorized to purchase and operate the Navajo Mine in 2013, located on the Navajo Nation, south of Farmington, New Mexico. The Navajo Mine currently supplies coal to the Four Corners Power Plant (FCPP), which is also located on the Navajo Nation. NTEC has entered into a contract with The North American Coal Corp. to operate the Navajo Mine commencing on January 1, 2016. The Navajo Mine is on a lease on Navajo Nation lands and has provided coal to FCPP for 50 years. For more information, visit www.navajo-tec.com.
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