ALLIANCE HOLDINGS GP, L.P. (NASDAQ:AHGP) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k

8 years ago

ALLIANCE HOLDINGS GP, L.P. (NASDAQ:AHGP) Files An 8-K Entry into a Material Definitive Agreement

ITEM 1.01Entry into a Material Definitive Agreement

The information set forth in Item 2.03 below is incorporated by
reference into this Item 1.01.

ITEM 2.03Creation of a Direct Financial Obligation

On April 3, 2017, Alliance Resource Partners, L.P.s (the
Partnership) wholly-owned subsidiary Alliance Resource Operating
Partners, L.P. (the Intermediate Partnership) entered into
Amendment No. 1 (the Amendment) to the Fourth Amended and
Restated Credit Agreement (the Credit Agreement) with certain
banks and other lenders, including JPMorgan Chase Bank, N.A. as
administrative agent (the “Administrative Agent”), for a
revolving credit facility and term loan (the “Credit
Facility”).The effectiveness of the Amendment is conditioned upon
the completion of the Intermediate Partnerships previously
announced bond offering and repayment of the Intermediate
Partnerships outstanding $145 million 6.72% Series B Senior Notes
Due June 26, 2018.The Amendment, among other things, modifies the
Credit Agreement as follows:

extends the maturity date for approximately $460.5
million in commitments to May 23, 2021,

eliminates the Cavalier and Senior Notes Conditions (as
defined in the Credit Agreement),

lowers the fixed charge ratio required for distribution
payments from 1.25 to 1.0 to 1.15 to 1.0,

raises the consolidated debt to consolidated cash flow
ratio required under the maintenance financial covenants
from 2.25 to 1.0 to 2.50 to 1.0,

eliminates the requirement that the Intermediate
Partnership maintain a certain level of mineable coal
reserves,

allows the Intermediate Partnership to repay its $145
million in Series B Notes prior to maturity,

further limits the Intermediate Partnerships subsidiaries
ability to incur unsecured debt directly as a borrower,
and

permits the Intermediate Partnership in certain instances
to require a lender to assign its position in the Credit
Agreement to another eligible lender if such lender
refuses to agree to an extension of the maturity of the
revolving credit facility after the Intermediate
Partnership so requests or refuses to approve a consent,
amendment or waiver under the Credit Agreement that
requires the approval of all lenders if such consent,
amendment or waiver has been approved by lenders holding
a majority of the lender commitments under the Credit
Agreement.

A copy of Amendment No. 1 to the Fourth Amended and Restated
Credit Agreement is filed as Exhibit 10.1 to this Current Report
on Form 8-K.

ITEM 8.01Other Events

On April 7, 2017, the Partnership issued a press release to
announce that the Intermediate Partnership and Alliance
Resource Finance Corporation priced their private placement to
eligible purchasers of $400.0 million aggregate principal
amount of 7.5% senior notes due 2025 (the Notes).The Notes
priced at par and the settlement of the private placement is
expected to occur on April 24, 2017, subject to customary
closing conditions. A copy of the press release is attached
hereto as Exhibit 99.1 to this Current Report on Form 8-K and
incorporated herein by reference.

ITEM 9.01Financial Statements and Exhibits.

(d) Exhibits



Exhibit Number		Description
10.1	Amendment No. 1 dated April 3, 2017 to the Fourth Amended and Restated Credit Agreement, dated as of January, 27, 2017, by and among Alliance Resource Operating Partners, L.P., as borrower, the initial lenders, initial issuing banks and swingline bank named therein, JPMorgan Chase Bank, N.A., as administrative agent, JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC and Citigroup Global Markets Inc. as joint lead arrangers, JPMorgan Chase Bank, N.A., Wells Fargo Securities, LLC, Citigroup Global Markets Inc., and BOKF, NA DBA Bank of Oklahoma as joint bookrunners, Wells Fargo Bank, National Association, Citibank, N.A., and BOKF, NA DBA Bank of Oklahoma as syndication agents, and the other institutions named therein as documentation agents.
99.1	Press release dated April 7, 2017.

About ALLIANCE HOLDINGS GP, L.P. (NASDAQ:AHGP)
Alliance Holdings GP, L.P. is a limited partnership company. The Company owns directly and indirectly 100% of the members’ interest in Alliance Resource Management GP, LLC (MGP), the managing general partner of Alliance Resource Partners, L.P. (ARLP). The Company’s segments include Illinois Basin, Appalachia, and Other and Corporate. The Illinois Basin segment consists of various operating segments, including Webster County Coal’s Dotiki mining complex, Gibson County Coal’s mining complex, Hopkins County Coal’s mining complex, White County Coal’s Pattiki mining complex, Warrior’s mining complex, Sebree Mining’s mining complex, River View’s mining complex and the Hamilton mining complex. The Appalachia segment consists of various operating segments, including the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining mining complex. The Other and Corporate segment includes Alliance Service, Inc. (ASI) and its subsidiary, Matrix Design and its subsidiaries. ALLIANCE HOLDINGS GP, L.P. (NASDAQ:AHGP) Recent Trading Information
ALLIANCE HOLDINGS GP, L.P. (NASDAQ:AHGP) closed its last trading session down -0.64 at 28.57 with 66,365 shares trading hands.