ST. LOUIS, March 2 /PRNewswire-FirstCall/ -- Patriot Coal Corporation (NYSE: PCX) today announced that it has established a $125 million receivables securitization program. Fifth Third Bank will be the initial funding source under the program, with a maximum commitment of $75 million. Patriot may add additional funding sources in the future.
"We are pleased to add an additional source of liquidity to our solid financial position," noted Patriot Chief Financial Officer Mark N. Schroeder. "This program allows Patriot more flexibility, while continuing to maintain our low debt levels."
Patriot anticipates that the program will be used primarily to provide for the issuance of letters of credit, including letters of credit relating to post-mining reclamation, workers' compensation and retiree healthcare obligations. Receivables in the program will be subject to customary criteria, limits and reserves. The purchase commitments under the program expire in March 2013, subject to extensions thereafter with the approval of the funding sources.
About Patriot Coal
Patriot Coal Corporation is a leading producer and marketer of coal in the eastern United States, with 14 current mining complexes in Appalachia and the Illinois Basin. The Company ships to domestic and international electric utilities, industrial users and metallurgical coal customers, and controls approximately 1.8 billion tons of proven and probable coal reserves. The Company's common stock trades on the New York Stock Exchange under the symbol PCX.
