December 20, 2007 14:18 ET

WestLB Closes Credit Facility for Mepco Companies' Expansion to Provide Coal to the Longview Power Plant

NEW YORK, NY--(Marketwire - December 20, 2007) - WestLB announced today that it acted as Sole Bookrunner, Lead Arranger and Administrative Agent on USD 120 million of senior secured credit facilities for the expansion of Mepco Holdings (Mepco) coal operations. The financing will support the acquisition of Mepco Companies' existing coal operations by First Reserve Corporation, the largest private equity firm specializing in the energy industry; will refinance existing debt, and fund capital expenditures for a mine expansion project located in Monongalia County, West Virginia and Greene County, Pennsylvania.

The financing includes a USD 58 million Term Loan B Facility as well as a USD 42 million Expansion Term Loan Facility, and a USD 20 million working capital facility.

"WestLB is pleased to be First Reserve's bank of choice to help fund the expansion of Mepco's coal facility," said Manish Taneja, Global Head of Loan Syndications.

The Mepco Companies are currently producing approximately two million tons per year, and with the expansion, Mepco will reach production capacity of four million tons per year. This incremental production of approximately two million tons, as a result of the mine expansion, will be contracted for 20-years under a fixed price contract with Longview Power; a supercritical cycle pulverized coal-fired power generating facility currently under construction. Longview is located adjacent to Mepco's operations (with the coal to be supplied by conveyor) and is scheduled to be operational by 2011. Mepco will have total fixed priced contracts covering approximately 90 percent of coal sales through 2020.

"WestLB has a wide range of expertise in the energy sector," said Tom Murray, Global Head of Energy. "In addition to sole lead arranging this financing, we also acted as joint bookrunner on the USD 1.1 billion Longview Power Plant transaction, to where the coal is being supplied."

About WestLB Capital Markets

WestLB develops sophisticated structured solutions through a team of highly experienced investment banking and capital markets professionals. WestLB has a long-standing presence in the corporate, structured and asset-backed financing sectors supporting clients' needs with capital commitments, advisory services and innovative financing solutions. The bank's global relationships, coupled with its unique understanding of local economies, industries and cultures, help WestLB bankers consistently deliver high quality advice and service.

About WestLB

WestLB AG is one of Germany's leading financial services providers and offers the full range of products and services of a universal bank, focusing on lending, structured finance, capital market and private equity products, private banking, asset management, transaction services and real estate finance. WestLB has total assets of EUR 280 billion, as of September 30, 2007. For more information, please visit

In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC.

(NOTE: 3rd Quarter Earnings Release/as of September 30, 2007 distributed to public on December 6, 2007)

Contact Information

  • Contact:
    WestLB AG - Group Communications - Americas
    Ashweeta Durani
    Ph: 212-852-6310
    Email Contact

    Connie J. Kain
    Ph: 212-597-1439
    Email Contact