Arch Coal’s debt
According to Arch Coal’s (ARCH) latest 10-Q filings, the book value of its long-term debt is ~$315 million, of which a term loan of ~$297 million is due for payment in 2024. It is also subject to quarterly principal amortization payments of $750,000.
Arch Coal’s interest expenses were ~$6.0 million in 2Q17 and $9.4 million in 1Q17. The company’s interest expenses fell in 4Q16 after it exited from bankruptcy protection through financial restructuring. Arch Coal’s fiscal 2017 net interest expense guidance is $23 million–$27 million.
As of June 30, 2017, Arch Coal had a TTM[1.trailing-12-month] debt-to-adjusted EBITDA[earnings before interest, tax, depreciation, and amortization] ratio of ~0.97x. The company’s leverage was lower than other coal (KOL) companies’. Westmoreland Coal’s (WLB) ratio was 6.9x, Cloud Peak Energy’s (CLD) was 3.6x, CNX Coal Resources’ (CNXC) was 1.9x, and Peabody Energy’s (BTU) was 1.3x.
Arch Coal had ~$334 million in cash and cash equivalents on its books as of June 30, 2017. It had ~$21.2 million in letters of credit under an inventory-based revolving credit facility, and ~$130.4 million in letters of credit under an accounts receivable securitization facility, with a cash collateral of $41.7 million. In 1Q17 and 2Q17, Arch Coal declared a quarterly cash distribution of $0.35 per stock. Check our coal page for sector updates.