has obtained senior secured acquisition financing

Headwaters MB Advised Navajo Transitional Energy Company on a $115 Million Senior Secured Acquisition Financing for the Navajo Coal Mine

August 2016

Headwaters MB advised Navajo Transitional Energy Company (NTEC) on a senior secured acquisition financing for the Navajo Mine from BHP Billiton.  This coal mine is the sole fuel source for the Four Corners Power Plant.  Both the mine and the plant are located on the Navajo Nation.

The Credit Facility consists of a $95 million term loan and a $20 million revolving credit commitment provided by a group of banks led by KeyBank National Association as Administrative Agent and Collateral Agent and Keybanc Capital Markets, Inc. as Coordinating Lead Arranger and Mandated Lead Arranger (collectively KeyBank). The proceeds from the term loan were used to pay the remaining balance of a promissory note issued to BHP Billiton in 2013 for the purchase of Navajo Mine and for fees and expenses of the transaction.

“Securing financing is a milestone for NTEC”, said Clark Moseley, CEO at NTEC. “With the advisement from Headwaters MB, NTEC secured a Credit Facility on our company’s merit without having to seek the financial backing of the Navajo Nation, the first for a tribal enterprise.”

Raymond McCormick, Managing Director at Headwaters MB commented, “securing senior debt in the coal industry today is a challenging task, but with the professionalism of NTEC management and management committee, a successful funding conclusion was obtained under very favorable terms and conditions.” Ricardo Campoy, Managing Director at Headwaters MB continued, “we are excited to have played a role in this growth story and look forward to seeing the Company grow and prosper providing significant wealth creation for the Navajo Nation and its people.”

Awards & Accolades

2017
Mining & Resources Restructuring Deal of the Year

Industry Experience

Minerals & Mining

Lead Professional

Raymond McCormick

Managing Director
“Securing financing is a milestone for NTEC.  With the advisement from Headwaters MB, NTEC secured a Credit Facility on our company’s merit without having to seek the financial backing of the Navajo Nation, the first for a tribal enterprise.”
Clark Moseley
CEO
Navajo Transitional Energy Company