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Exhibit 99.1
FOR IMMEDIATE RELEASE
August 23, 2000
Anker Receives Term Loan Commitment from Foothill
Morgantown, WV - Anker Coal Group, Inc. (the "Company") announced today
that it has received a commitment letter from Foothill Capital Corporation
("Foothill") to provide a supplemental term loan in the amount of $6.3 million.
Bruce Sparks, President of the Company, stated that "he is very pleased with
Foothill's commitment to provide this supplemental facility and their continuing
cooperation with the Company as it implements its business plan and works to
improve its financial performance."
The supplemental term loan will be provided under the Company's
existing credit facility with Foothill and others, and will not increase the
maximum borrowing amount of $55 million under that facility. The supplemental
term loan will be amortized over a period of three years and will be payable in
thirty-six monthly installments beginning January 1, 2001. It will bear interest
at the same rate as the Company's existing term loan and will be secured by the
same collateral securing the Company's senior credit facility. The supplemental
term loan will be closed on or before September 29, 2000, and will be used to
fund in part the interest payment due on October 1, 2000 under the Company's
senior secured notes. Closing of the supplemental term loan is subject to
conditions contained in Foothill's commitment letter, including execution of
satisfactory documentation, excess availability of at least the amount of the
supplemental term loan, and other customary closing conditions.
In light of the Company's receipt of the commitment letter for the
supplemental term loan, the Company has determined not to exercise its option to
sell additional senior secured notes to WLR Recovery Fund L.P. (successor to
Rothschild Recovery Fund, L.P.).
This release may contain statements that constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are not guarantees of future performance
and involve risks and uncertainties. Actual results may differ materially from
those described or implied herein as a result of various factors, many of which
are beyond the Company's control.
Anker Coal Group, Inc. and its subsidiaries produce and sell coal used
principally for electric generation and steel production in the eastern United
States.
For more information, please contact Bruce Sparks of Anker Coal Group,
Inc. at (304) 594-1616.
