Sep. 29, 2009 (PR Newswire) --
SCOTT DEPOT, W.Va., Sept. 29 /PRNewswire-FirstCall/ -- International Coal Group, Inc. (NYSE: ICO) today announced it has entered into an amendment of its $100 million credit facility. The Company sought the amendment from its lending group because of increasing market-driven risk of noncompliance with certain covenants that were contractually scheduled to tighten effective January 1, 2010. The recent drop in coal demand due to the economic downturn has significantly weakened coal pricing and heightened concerns on meeting the year-end step-up in covenant requirements. This amendment eases those debt covenant requirements.
The Company currently has $26.4 million in borrowing capacity available under the credit facility, with $73.6 million currently used for letters of credit issued to support the Company's reclamation bonds and other bonding requirements.
"We are pleased to have reached an agreement with our banks to address short-term tightness in our debt covenants," said Ben Hatfield, President and CEO of ICG. "We expect to be in full compliance with our covenants going forward."
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements within the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995 and may involve a number of risks and uncertainties. We have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. These forward-looking statements are made based on expectations and beliefs concerning future events affecting us and are subject to various risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements.
