#United States #CONSOL Energy #Core Natural Resources #Canonsburg #CNR

Core Natural Resources Completes Successful Refinancing

Canonsburg, PA – March 28, 2025 – Core Natural Resources, Inc. (NYSE: CNR), established through the merger of CONSOL Energy and Arch Resources earlier this year, has proudly announced the successful completion of a key refinancing transaction involving tax-exempt bonds. The refinancing marks a pivotal step in strengthening the company’s financial foundation and setting it up for future growth.

The total bond amount has impressively increased from $276 million to $307 million. This significant move serves not just to bolster Core’s financial standing but also reflects the strong confidence that institutional investors have shown in the company's potential. The bond terms have been established with an initial maturity period of ten years, extending to March 2035. These bonds are now unsecured, offering greater flexibility compared to the previous arrangements.

A notable achievement within this refinancing is the reduction of the weighted average interest rate down to 5.3%. This feat comes in a climate of higher interest rates, showcasing Core’s adept financial management and strategic foresight.

Mitesh Thakkar, the President and Chief Financial Officer of Core, remarked on the vital support received from various financing partners and regional authorities in Pennsylvania, Maryland, and West Virginia. He emphasized the role these supportive relationships played in enabling such an essential transaction, which underscores the company’s robust operational portfolio and its diversified market approach. With a powerful cash-generating capability, Core is now in a strong position to navigate various market environments.

A Look at the Future

Core operates a high-quality portfolio of low-cost coal mines, including several key assets such as the Pennsylvania Mining Complex and the West Elk mine. Looking to expand its influence in the global market, Core focuses on meeting the increasing demands for steel, energy, and infrastructure both domestically and internationally. The lightning success of the refinancing effort illustrates a formidable balance between financial capability, market demands, and future expansion strategies.

The refinancing was more than just a routine transaction; it captured the attention of 39 institutional investors, who expressed overwhelming interest, resulting in subscriptions that exceeded six times the offer on a cumulative basis. The co-lead bookrunners Jefferies LLC and KeyBanc Capital played crucial roles in this endeavor, aided by benefactors such as B. Riley Securities, Goldman Sachs, and Texas Capital Markets.

Strategic Framework and Growth Prospects

Alignment of a capital structure around strategic initiatives serves as a bedrock for planning future expansions and operating frameworks. Core is optimistic as it establishes what it terms as a ‘smart and strategic capital structure,’ a framework that prioritizes financial flexibility and the pursuit of long-term growth potential.

Looking forward, Core Natural Resources is committed to maintaining a competitive edge in a volatile environment while pursuing its vision of harnessing energy resources sustainably. The restructuring of its debt through successfully issuing these bonds aligns with its growth strategies and aims to increase the availability of flexible funding options for ongoing operations and future opportunities.

In conclusion, this successful refinancing of Core’s bonds exemplifies the resilience and forward-thinking strategies employed in the ever-evolving natural resources sector. It signals to stakeholders a sturdy commitment to fostering scalable growth while adapting to changing market dynamics, thus reinforcing the company’s place as a key player in the coal production and exportation landscape.

About Core Natural Resources, Inc.

Founded from the merger of CONSOL Energy and Arch Resources in January 2025, Core Natural Resources stands as a premier producer and exporter of coal, catering to both metallurgical and thermal markets globally. Their operational prowess is anchored in high-quality low-cost coal production and expanding interests in marine export terminals, cementing their commitment to powering a growing world.