Wow the debt market is hot! After issuing a $345MM convert at 3.75% a few days ago, ANR is going to refinance their term loan (in which they will likely violate covenants soon) by issuing a $500MM 2020 COVENANT-LITE term loan (yes 2006 is back!). After refinancing this term loan debt and the converts, the company will have no debt maturities until 2018 so long time before this company could possibly file for bankruptcy. The current fed monetary policy has been a huge help and allowed this company to have enough runway to be a 5 year option on the met coal market heating up. Despite management prudently getting ahead of the refinancing curve, the stock continues to trade like garbage.
This is a when story...Not an if. Met coal and thermal coal will both be back strong as the world economies recover. NG going to $6.50 wouldn't hurt either. The questiion will be survival until the recovery comes.