Murray Energy Corporation Press Release
ST. CLAIRSVILLE, Ohio, Oct. 31, 2017 /PRNewswire/ — Murray Energy Corporation (“Murray Energy”), Mr. John Siegel, the current Chairman of Bowie Resource Partners, LLC (“Bowie”), Javelin Global Commodities (UK) LTD (“Javelin”), and Grupo CLISA, S. de R.L. de C.V. (“CLISA”) (collectively the “CCR Investors”) hereby announce that they have agreed to form a strategic partnership called Canyon Consolidated Resources, LLC (“CCR”). In founding CCR, the CCR Investors will combine: 1.) the assets of Bowie; 2.) the marketing, logistics and business development platform developed by Mr. Siegel and the current Bowie executives; 3.) Murray Energy’s management and operational expertise and coal from UtahAmerican Energy, Inc.’s Lila Canyon Mine, which is ultimately owned by Murray Energy; and 4.) Javelin’s and CLISA’s coal marketing expertise; to create the premier producer and marketer of bituminous coal in the Western United States.
CCR’s ownership is roughly summarized as follows: 30.5% by Murray Energy; 30.5% by entities owned or controlled by Mr. Siegel; 28.5% by second lien lenders, via warrants; 7.25% by Javelin, a leading marketing and trading firm of thermal coal and other commodities; and 2.25% by CLISA, a trading and investment group based in Mexico with a focus on the energy industry.
The CCR Investors expect to finance a portion of the partnership, and pay related fees and expenses, with the proceeds of debt financing. A portion of these proceeds will be used to recapitalize Bowie’s existing capital structure. Jefferies is acting as Sole Financial Advisor on the transaction.
“We are extremely pleased to form this strategic partnership that is CCR, with Mr. John Siegel, and our other partners,” stated Mr. Robert E. Murray, Chairman, President, and Chief Executive Officer of Murray Energy.
Mr. Murray continued, stating, “We are very familiar with Bowie’s coal mines and with coal markets both domestically and internationally. We believe that this partnership will generate tremendous cost synergies, which will allow these mines to be extremely competitive in the domestic and international coal marketplace.”
Mr. Robert D. Moore, Executive Vice President, Chief Operating Officer, and Chief Financial Officer of Murray Energy stated that “Clearly, the United States coal industry has experienced tremendous transformation over the past several years. We have long maintained that our industry must undergo significant consolidation in order to survive in what have been extraordinarily depressed coal markets. This CCR partnership will provide this necessary consolidation, which will substantially benefit all interested parties.”