CONSOL Energy Amends and Restates Loan Agreements Totaling $2.5 Billion

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Apr 13, 2011, 08:45 ET

PITTSBURGH, April 13, 2011 /PRNewswire/ -- CONSOL Energy Inc. (NYSE: CNX), the leading diversified fuel producer in the Eastern U.S., has amended and restated its $1.5 billion Senior Secured Credit Agreement, effective April 12, 2011.

CNX Gas Corporation, a wholly-owned subsidiary, has also amended and restated its Senior Secured Credit Agreement, effective April 12, 2011. The new agreement provides for a $1.0 billion revolving credit facility, which is an increase from the $700 million facility previously in effect.

Both Agreements provide for a syndicated five-year term.

"These new facilities further enhance our financial flexibility," said William J. Lyons, executive vice president and chief financial officer. "We were able to negotiate favorable terms because of the confidence lenders have in the energy sector, in general, and CONSOL Energy and CNX Gas, in particular."

The facilities are secured by the assets of the retrospective companies. Proceeds from both facilities will be used for general corporate purposes.

For the CONSOL Energy facility, PNC Bank, National Association, acted as Administrative Agent and Bank of America, N.A., acted as Syndication Agent. The Bank of Nova Scotia, The Royal Bank of Scotland PLC, and Sovereign Bank acted as Co-Documentation agents. PNC Capital Markets LLC and Merrill Lynch, Pierce, Fenner, & Smith Incorporated acted as Joint Lead Arrangers. There are 26 lending institutions in the syndicate.

For the CNX Gas Corporation facility, PNC Bank, National Association, acted as Administrative Agent and Bank of America, N.A., acted as Syndication Agent. The Bank of Nova Scotia, The Royal Bank of Scotland PLC, and Wells Fargo Bank, N.A., acted as Co-Documentation agents. PNC Capital Markets LLC and Merrill Lynch, Pierce, Fenner, & Smith Incorporated acted as Joint Lead Arrangers. There are 27 lending institutions in the syndicate.

SOURCE CONSOL Energy Inc.