BROOKWOOD, Ala.--(BUSINESS WIRE)--
Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”)
previously announced the expiration and results of its Restricted
Payment Offer, which was made pursuant to the terms of the Company’s
indenture (as amended or supplemented, the “Indenture”) governing the
Company’s 8.00% Senior Secured Notes due 2024 (the “Notes”). As a result
of the Restricted Payment Offer, the Company is now permitted to make
one or more restricted payments in the form of special dividends to
holders of the Company’s common stock and/or repurchases of the
Company’s common stock in the aggregate amount of up to $299,401,000
(the “Restricted Payment Capacity”) without having to make another offer
to repurchase Notes. In addition to using the Restricted Payment
Capacity to make up to $70.0 million in purchases under the new stock
repurchase program described below, the Company intends to accumulate
cash and, subject to approval by the Board, pay a special dividend to
the holders of its common stock of up to $229,401,000 in the near future.
The Company announced today that its board of directors (the “Board”)
has approved the Company’s second stock repurchase program (the “New
Stock Repurchase Program”) that authorizes repurchases of up to an
additional $70.0 million in the aggregate of its outstanding common
stock. The Company has fully exhausted its previous stock repurchase
program of $40.0 million of its outstanding common stock. The New Stock
Repurchase Program does not require the Company to repurchase a specific
number of shares or have an expiration date and may be suspended or
discontinued by the Board at any time without prior notice.
Under the New Stock Repurchase Program, the Company may repurchase
shares of its common stock from time to time, in amounts, at prices and
at such times as the Company deems appropriate, subject to market and
industry conditions, share price, regulatory requirements as determined
from time to time by the Company and other considerations. The Company’s
repurchases may be executed using open market purchases or privately
negotiated transactions in accordance with applicable securities laws
and regulations, including Rule 10b-18 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”) and repurchases may be executed
pursuant to Rule 10b5-1 under the Exchange Act. Repurchases will be
subject to limitations in the Company’s asset-based revolving credit
agreement and the Indenture. The Company intends to fund repurchases
under the New Stock Repurchase Program from cash on hand and/or other
sources of liquidity.
About Warrior Met Coal
Warrior is a large scale, low-cost U.S. based producer and exporter of
premium hard coking coal (“HCC”), operating highly efficient longwall
operations in its underground mines located in Alabama. The HCC that
Warrior produces from the Blue Creek coal seam contains very low sulfur
and has strong coking properties and is of a similar quality to coal
referred to as the premium HCC produced in Australia. The premium nature
of Warrior’s HCC makes it ideally suited as a base feed coal for steel
makers and results in price realizations near the Australian LV Index.
Warrior sells all of its met coal production to steel producers in
Europe, South America and Asia. For more information about Warrior Met
Coal, please visit www.warriormetcoal.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the future
are forward-looking statements.The words “believe,” “expect,”
“may,” “anticipate,” “plan,” “intend,” “estimate,” “project,” “target,”
“foresee,” “should,” “would,” “could,” “potential,” or other similar
expressions are intended to identify forward-looking statements.
However, the absence of these words does not mean that the statements
are not forward-looking. These forward-looking statements represent
management’s good faith expectations, projections, guidance or beliefs
concerning future events, and it is possible that the results described
in this press release will not be achieved. Specifically, the Company
cannot assure you that the proposed transactions described above,
including the repurchase of shares of common stock under the New Stock
Repurchase Program and the approval, declaration and payment of any
special dividendwill be consummated on the terms the Company
currently contemplates, if at all. Information concerning these and
other factors can be found in the Company’s filings with the U.S.
Securities and Exchange Commission (“SEC”), including its Annual Report
on Form 10-K for the year ended December 31, 2018 and other reports
filed from time to time with the SEC. The Company’s filings with the SEC
are available on the SEC's website at www.sec.gov.
Any forward-looking statement speaks only as of the date on which it
is made, and, except as required by law, the Company does not undertake
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.New
factors emerge from time to time, and it is not possible for the Company
to predict all such factors.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190326005945/en/
For Investors:
Dale W. Boyles, 205-554-6129
[email protected]
For
Media:
William Stanhouse, 205-554-6131
[email protected]
Source: Warrior Met Coal, Inc.