Freepoint Commodities Completes Off-Take and Financing Transaction with Covenant Coal
STAMFORD, Conn., June 13, 2013 /PRNewswire/ -- Freepoint Commodities LLC, through its subsidiary Commerce Coal LLC, has announced that it has closed a coal prepayment financing and off-take transaction with Covenant Coal Corporation, Inc. The transaction, which finances the growth of Covenant's thermal coal mining operations located in Pike County, Kentucky, represents a significant expansion of Freepoint's merchant coal business. The transaction was completed on May 31, 2013.
"This transaction again demonstrates that Freepoint can deliver creative, streamlined solutions to commodity producers," said David A. Messer, CEO of Freepoint. "Freepoint's merchant platform positions itself at the intersection of physical commodity markets and finance. We provide a one-stop solution to customers like Covenant looking for both finance and off-take services."
"We are very excited about this opportunity to achieve our growth plan," said Jerry Tackett, CEO of Covenant. "With this transaction, Covenant is in an excellent position to expand the scope of its coal mining operations. We look forward to continuing our relationship with Freepoint as we begin a new phase of operations."
About Freepoint Commodities LLC and Commerce Coal LLC
Commerce Coal LLC is a subsidiary of Freepoint Commodities LLC, which was founded by former Sempra Energy Trading executives. Freepoint Commodities LLC is based in Stamford, CT and launched multiple platforms in the energy, metals and other commodities markets starting in March 2011. Management and private equity funds managed by Stone Point Capital have provided the initial equity capital for Freepoint Commodities LLC and its subsidiaries, including Commerce Coal LLC, which also is based in Stamford, CT.
About Covenant Coal Corporation, Inc.
Covenant Coal Corporation, Inc. was founded in 2005. With its subsidiary, Freedom Coal, Inc., Covenant is developing its coal mining operations in Pike County Kentucky.
SOURCE Freepoint Commodities LLC