Coal Miner Bowie Resource Partners Cancels Takeover
By Editors of Power Engineering
Kentucky coal-mining company Bowie Resource Partners has pulled out of a $510 million deal that would have allowed Murray Energy Group and bondholders to take it over, the Wall Street Journal reported.
The deal would have refinanced Bowie’s debt and allowed the company’s current owner, commodity trading firm Trafigura PTE Ltd., to exit ownership.
Bowie had planned the formation of a new partnership with Murray to be called Canyon Consolidated Resources, which would have given Murray a 30.5 percent stake in the company with bond investors holding 28.5 percent.
With the debt deal off the table, the partnership is now in question. The Wall Street Journal indicated the debt deal was one of the riskier deals in the coal market, as it would have increased the amount of debt held by the company and relied on higher future earnings based on the price of exported coal remaining at current elevated levels.