CNX Resources Corporation completed the spin-off of CONSOL Energy Inc. for approximately $620 million.
The spin-off will be financed with a $100 million Senior Secured First Lien Term Loan A, $400 million Senior Secured First Lien Term Loan B and a $350 million Long-Term Second Lien Financing. A $300 million Senior Secured Revolving Credit Facility and $100 million Accounts Receivable Securitization Facility will be put in place to service Consol Mining's working capital requirement. Proceeds will be used to pay a one-time distribution to CONSOL Energy, refinance the existing CNX Coal Resources revolver and put cash on the balance sheet of Consol Mining.
Following completion of the spinoff, Consol Mining's name will be changed to CONSOL Energy Inc. CONSOL Energy Inc. will change its name to CNX Resources Corporation, and will retain its ticker symbol CNX on the New York Stock Exchange. CONSOL Mining Corporation will assume the name CONSOL Energy Inc., and will trade as an independent company on the New York Stock Exchange under the ticker symbol CEIX. CONSOL Energy stockholders will retain their shares of Company common stock, but as a result of the name change, these shares will represent shares of CNX Resources Corporation after the time of separation. Jimmy Brock has been appointed as Chief Executive Officer of the coal business and Katharine Fredriksen as President of the coal business. David Khani will serve as Chief Financial Officer of the coal business. The record date of the spin-off is November 15, 2017 and distribution is expected to be made on November 28, 2017.
The completion of the spin-off remains subject to various conditions, including approval by CONSOL Energy's board of directors. The board of directors of CONSOL Energy gave final approval to the spin-off on October 30, 2017. Transaction Fees of $20 million are costs primarily associated with the separation of the E&P and PA Mining Operations divisions. Merrill Lynch & Co acted as financial advisor to CONSOL Energy Inc.
CNX Resources Corporation (NYSE:CNX) completed the spin-off of CONSOL Energy Inc. (NYSE:CEIX) for approximately $620 million on November 28, 2017.