10-Q 1 arch-20220331x10q.htm 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                      .

Commission file number: 1-13105

Graphic

Arch Resources, Inc.

(Exact name of registrant as specified in its charter)

Delaware

    

43-0921172

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification Number)

One CityPlace Drive

    

Suite 300

St. Louis

Missouri

63141

(Address of principal executive offices)

(Zip code)

Registrant’s telephone number, including area code: (314) 994-2700

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which registered

Common stock, $.01 par value

ARCH

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 

At April 21, 2022 there were 15,477,360 shares of the registrant’s common stock outstanding.

Part I

FINANCIAL INFORMATION

Item 1.Financial Statements.

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

    

    

Three Months Ended March 31, 

    

2022

    

2021

(Unaudited)

Revenues

$

867,936

$

357,543

Costs, expenses and other operating

 

 

 

Cost of sales (exclusive of items shown separately below)

 

508,225

 

309,906

 

Depreciation, depletion and amortization

 

32,210

 

25,797

 

Accretion on asset retirement obligations

 

4,430

 

5,437

 

Change in fair value of coal derivatives and coal trading activities, net

 

15,519

 

528

 

Selling, general and administrative expenses

 

26,648

 

21,480

 

Other operating income, net

 

(3,439)

 

(5,268)

 

 

583,593

 

357,880

 

Income (loss) from operations

 

284,343

 

(337)

 

Interest expense, net

 

  

 

  

 

Interest expense

 

(7,047)

 

(4,128)

 

Interest and investment income

 

24

 

328

 

 

(7,023)

 

(3,800)

 

Income (loss) before nonoperating expenses

 

277,320

 

(4,137)

 

Nonoperating expenses

 

  

 

  

 

Non-service related pension and postretirement benefit costs

 

(873)

 

(1,527)

 

Net loss resulting from early retirement of debt

(4,120)

 

(4,993)

 

(1,527)

 

Income (loss) before income taxes

 

272,327

 

(5,664)

 

Provision for income taxes

 

455

 

378

 

Net income (loss)

$

271,872

$

(6,042)

Net income (loss) per common share

 

 

  

Basic earnings (loss) per share

$

17.60

$

(0.40)

Diluted earnings (loss) per share

$

12.89

$

(0.40)

Weighted average shares outstanding

 

  

 

  

Basic weighted average shares outstanding

 

15,448

 

15,283

Diluted weighted average shares outstanding

 

21,271

 

15,283

Dividends declared per common share

$

0.25

$

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

    

    

Three Months Ended March 31, 

    

2022

    

2021

(Unaudited)

Net income (loss)

$

271,872

$

(6,042)

Derivative instruments

 

  

 

  

 

Comprehensive income before tax

 

1,763

 

689

 

Income tax benefit (provision)

 

 

 

 

1,763

 

689

 

Pension, postretirement and other post-employment benefits

 

  

 

  

Comprehensive income (loss) before tax

 

(522)

 

547

 

Income tax benefit (provision)

 

 

 

 

(522)

 

547

 

Available-for-sale securities

 

  

 

  

 

Comprehensive income before tax

 

182

 

101

 

Income tax benefit (provision)

 

 

 

 

182

 

101

 

Total other comprehensive income

 

1,423

 

1,337

 

Total comprehensive income (loss)

$

273,295

$

(4,705)

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

    

March 31, 2022

    

December 31, 2021

Assets

(Unaudited)

Current assets

 

  

 

  

Cash and cash equivalents

$

318,725

$

325,194

Short-term investments

 

 

14,463

Restricted cash

 

1,100

 

1,101

Trade accounts receivable (net of $0 allowance at March 31, 2022 and December 31, 2021)

 

323,167

 

324,304

Other receivables

 

9,807

 

8,271

Inventories

 

203,997

 

156,734

Other current assets

 

50,217

 

52,804

Total current assets

 

907,013

 

882,871

Property, plant and equipment, net

 

1,111,359

 

1,120,043

Other assets

 

  

 

  

Equity investments

 

16,494

 

15,403

Fund for asset retirement obligations

40,000

20,000

Other noncurrent assets

 

76,019

 

78,843

Total other assets

 

132,513

 

114,246

Total assets

$

2,150,885

$

2,117,160

Liabilities and Stockholders' Equity

 

  

 

  

Current Liabilities

 

  

 

  

Accounts payable

$

147,284

$

131,986

Accrued expenses and other current liabilities

 

179,200

 

167,304

Current maturities of debt

 

182,611

 

223,050

Total current liabilities

 

509,095

 

522,340

Long-term debt

 

132,290

 

337,623

Asset retirement obligations

 

193,745

 

192,672

Accrued pension benefits

 

948

 

1,300

Accrued postretirement benefits other than pension

 

73,828

 

73,565

Accrued workers’ compensation

 

222,462

 

224,105

Other noncurrent liabilities

 

94,265

 

81,689

Total liabilities

 

1,226,633

 

1,433,294

Stockholders' equity

 

  

 

  

Common stock, $0.01 par value, authorized 300,000 shares, issued 25,565 and 25,481 shares at March 31, 2022 and December 31, 2021, respectively

 

256

 

255

Paid-in capital

 

748,999

 

784,356

Retained earnings

 

986,797

 

712,478

Treasury stock, 10,088 shares at March 31, 2022 and December 31, 2021, respectively, at cost

 

(827,381)

 

(827,381)

Accumulated other comprehensive income

 

15,581

 

14,158

Total stockholders’ equity

 

924,252

 

683,866

Total liabilities and stockholders’ equity

$

2,150,885

$

2,117,160

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

Three Months Ended March 31, 

    

2022

    

2021

Operating activities

 

(Unaudited)

Net income (loss)

$

271,872

$

(6,042)

Adjustments to reconcile to cash from operating activities:

 

  

 

  

Depreciation, depletion and amortization

 

32,210

 

25,797

Accretion on asset retirement obligations

 

4,430

 

5,437

Deferred income taxes

 

 

372

Employee stock-based compensation expense

 

8,203

 

3,885

Amortization relating to financing activities

 

770

 

1,326

Gain on disposals and divestitures, net

 

(352)

 

(188)

Reclamation work completed

 

(4,278)

 

(11,553)

Contribution to fund asset retirement obligations

(20,000)

Changes in:

 

 

Receivables

 

(399)

 

(18,929)

Inventories

 

(47,263)

 

(28,387)

Accounts payable, accrued expenses and other current liabilities

 

14,115

 

13,827

Income taxes, net

 

442

 

(33)

Coal derivative assets and liabilities, including margin account

 

15,833

 

(537)

Other

 

17,356

 

20,711

Cash provided by operating activities

 

292,939

 

5,686

Investing activities

 

 

  

Capital expenditures

 

(22,288)

 

(76,758)

Minimum royalty payments

 

 

(62)

Proceeds from disposals and divestitures

 

360

 

188

Proceeds from sales of short-term investments

 

14,450

 

34,981

Investments in and advances to affiliates, net

 

(2,088)

 

(1,114)

Cash used in investing activities

 

(9,566)

 

(42,765)

Financing activities

 

  

 

  

Payments on term loan

 

(271,537)

 

(750)

Proceeds from tax exempt bonds

44,985

Net payments on other debt

 

(10,134)

 

(9,536)

Debt financing costs

 

 

(1,194)

Dividends paid

 

(3,851)

 

Payments for taxes related to net share settlement of equity awards

 

(4,827)

 

(1,316)

Proceeds from warrants exercised

506

Cash (used in) provided by financing activities

 

(289,843)

 

32,189

Decrease in cash and cash equivalents, including restricted cash

 

(6,470)

 

(4,890)

Cash and cash equivalents, including restricted cash, beginning of period

$

326,295

$

193,445

Cash and cash equivalents, including restricted cash, end of period

$

319,825

$

188,555

Cash and cash equivalents, including restricted cash, end of period

Cash and cash equivalents

$

318,725

$

169,593

Restricted Cash

1,100

18,962

$

319,825

$

188,555

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

Arch Resources, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

    

    

    

    

    

Treasury

    

Accumulated Other

    

Common

Paid-In

Retained 

Stock at

Comprehensive

Stock

Capital

Earnings

Cost

Income

Total

(In thousands)

Balances, January 1, 2022

 

$

255

 

$

784,356

$

712,478

$

(827,381)

$

14,158

$

683,866

Cumulative effect of accounting change on convertible debt

(39,239)

6,718

(32,521)

Dividends on common shares ($0.25/share)

 

 

 

(4,271)

 

 

 

(4,271)

Total comprehensive income (loss)

 

 

 

271,872

 

 

1,423

 

273,295

Employee stock-based compensation

8,203

8,203

Issuance of 71,338 shares of common stock under long-term incentive plan

1

1

Common stock withheld related to net share settlement of equity awards

(4,827)

(4,827)

Issuance of 13,239 shares of common stock for warrants exercised

506

506

Balances at March 31, 2022

$

256

$

748,999

$

986,797

$

(827,381)

$

15,581

$

924,252

    

    

    

    

    

Treasury

    

Accumulated Other

    

Common

Paid-In

Retained 

Stock at

Comprehensive

Stock

Capital

Earnings

Cost

(loss)

Total

(In thousands)

Balances, January 1, 2021

    

$

253

    

$

767,484

    

$

378,906

    

$

(827,381)

    

$

(35,701)

    

$

283,561

Total comprehensive income (loss)

 

 

 

(6,042)

 

 

1,337

 

(4,705)

Employee stock-based compensation

 

 

3,885

 

18

 

 

 

3,903

Issuance of 59,166 shares of common stock under long-term incentive plan

1

1

Common stock withheld related to net share settlement of equity awards

 

 

(1,317)

 

 

 

 

(1,317)

Balances at March 31, 2021

$

254

$

770,052

$

372,882

$

(827,381)

$

(34,364)

$

281,443

The accompanying notes are an integral part of the condensed consolidated financial statements.

7

Arch Resources, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Arch Resources, Inc. (“Arch Resources”) and its subsidiaries (“Arch” or the “Company”). Unless the context indicates otherwise, the terms “Arch” and the “Company” are used interchangeably in this Quarterly Report on Form 10-Q. The Company’s primary business is the production of metallurgical and thermal coal from underground and surface mines located throughout the United States, for sale to steel producers, utility companies, and industrial accounts both in the United States and around the world. The Company currently operates mining complexes in West Virginia, Wyoming and Colorado. All subsidiaries are wholly owned. Intercompany transactions and accounts have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and U.S. Securities and Exchange Commission regulations. In the opinion of management, all adjustments, consisting of normal, recurring accruals considered necessary for a fair presentation, have been included. Results of operations for the three months ended March 31, 2022 are not necessarily indicative of results to be expected for the year ending December 31, 2022. These financial statements should be read in conjunction with the audited financial statements and related notes as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission.

2. Accounting Policies

Recently Adopted Accounting Guidance

In August 2020, the FASB issued ASU 2020-06Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity's Own Equity.  ASU 2020-06 reduces the number of accounting models for convertible debt instruments. Additionally, ASU 2020-06 amends the diluted earnings per share calculation for convertible instruments by requiring the use of the if-converted method. The if-converted method assumes the conversion of convertible instruments occurs at the beginning of the reporting period and diluted weighted average shares outstanding includes the common shares issuable upon conversion of the convertible instruments. ASU 2020-06 is effective for public business entities, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted ASU 2020-06 on January 1, 2022 under the modified retrospective approach.

Upon issuance of the Company's $155.3 million principal amount of 5.25 % convertible senior notes due 2025 (the "Convertible Notes") in November 2020, the Company bifurcated the debt and equity components of the Convertible Notes to long-term debt and additional paid-in capital in its consolidated balance sheet. The amount recorded to additional paid-in capital represented a debt discount that was being amortized to interest expense over the life of the Convertible Notes. As part of the adoption of ASU 2020-06, the Company (i) reversed the equity component recorded to additional paid-in capital of $39.2 million, (ii) recorded a cumulative effect of the adoption of ASU 2020-06 of $6.7 million to retained earnings, representing a reversal of the debt discount that was amortized to interest expense, and (iii) an offsetting increase in debt. See Note 8, “Debt and Financing Arrangements” for additional information.

Additionally, upon adoption of ASU 2020-06, the treasury stock method utilized by the Company to calculate earnings per share through December 31, 2021 is no longer permitted. Accordingly, the Company has transitioned to the if-converted method utilizing the modified retrospective approach, resulting in 4.2 million shares being included in the Company's weighted-average diluted shares outstanding for the quarter ended March 31, 2022.  Under the previous treasury stock method, the diluted earnings per share would have been approximately $13.73. As a result of the adoption of ASU 2020-06, diluted earnings per share decreased by $0.84 for the quarter end March 31, 2022. See Note 11, “Earnings (Loss) per Common Share” for additional information.

8

Recent Accounting Guidance Issued Not Yet Effective

There are no new pronouncements issued but not yet effective expected to have a material impact on the Company’s financial position, results of operations, or liquidity.

9

3. Accumulated Other Comprehensive Income (Loss)

The following items are included in accumulated other comprehensive income (loss) (“AOCI”), net of tax:

    

    

Pension,

    

 

Postretirement

Accumulated

and Other Post-

Other

Derivative

Employment

Available-for-

Comprehensive

Instruments

Benefits

Sale Securities

Income (loss)

 

(In thousands)

Balance at December 31, 2021

$

(1,763)

$

16,103

$

(182)

 

$

14,158

Unrealized gains (losses)

 

223

 

 

 

 

223

Amounts reclassified from accumulated other comprehensive income (loss)

 

1,540

 

(522)

 

182

 

 

1,200

Balances at March 31, 2022

$

$

15,581

$

 

$

15,581

The following amounts were reclassified out of AOCI:

Three Months Ended March 31, 

 

 

Line Item in the
Consolidated

Details About AOCI Components

    

2022

    

2021

  

  

Statements of Operations

Interest rate hedges

 

(112)

 

(624)

Interest expense

Interest rate hedges (ineffective portion)

(1,428)

 

Net loss resulting from early retirement of debt

 

 

 

Provision for income taxes

$

(1,540)

$

(624)

 

Net of tax

Pension, postretirement and other post-employment benefits

Amortization of actuarial gains (losses), net 1

$

627

$

(591)

 

Non-service related pension and postretirement benefit (costs) credits

Amortization of prior service credits

(105)

44

Non-service related pension and postretirement benefit (costs) credits

 

 

 

Provision for income taxes

$

522

$

(547)

 

Net of tax

Available-for-sale securities 2

$

(182)

$

10

 

Interest and investment income

 

 

 

Provision for income taxes

$

(182)

$

10

 

Net of tax

1 Production-related benefits and workers’ compensation costs are included in costs of sales.

2 The gains and losses on sales of available-for-sale-securities are determined on a specific identification basis.

4. Inventories

Inventories consist of the following:

    

March 31, 

    

December 31, 

 

2022

 

2021

(In thousands)

Coal

$

113,330

$

75,653

Repair parts and supplies

 

90,667

 

81,081

$

203,997

$

156,734

10

The repair parts and supplies are stated net of an allowance for slow-moving and obsolete inventories of $2.3 million at March 31, 2022 and $2.3 million at December 31, 2021.

5. Investments in Available-for-Sale Securities

The Company has invested in marketable debt securities, primarily highly liquid U.S. Treasury securities and investment grade corporate bonds. These investments are held in the custody of a major financial institution. These securities are classified as available-for-sale securities and, accordingly, the unrealized gains and losses are recorded through other comprehensive income. During the quarter of March 31, 2022, the Company liquidated its remaining investments.

The Company’s investments in available-for-sale marketable securities are as follows:

March 31, 2022

Gross

Allowance

Unrealized

for - Credit

Fair

    

Cost Basis

    

Gains

    

Losses

Losses

    

Value

(In thousands)

Available-for-sale:

 

  

 

  

 

  

 

  

U.S. government and agency securities

$

$

$

$

$

Corporate notes and bonds

 

 

 

 

 

Total Investments

$

$

$

$

$

December 31, 2021

Gross

Allowance

Unrealized

for - Credit

Fair

    

Cost Basis

    

Gains

    

Losses

Losses

    

Value

 

(In thousands)

Available-for-sale:

U.S. government and agency securities

$

6,074

$

$

(71)

$

$

6,003

Corporate notes and bonds

 

8,571

 

 

(111)

 

 

8,460

Total Investments

$

14,645

$

$

(182)

$

$

14,463

There were no investments with unrealized losses that were owned for less than a year at March 31, 2022 and December 31, 2021, respectively. The aggregate fair value of investments with unrealized losses that were owned for over a year was $0.0 million and $14.5 million at March 31, 2022 and December 31, 2021, respectively.

The Company classifies its investments as current based on the nature of the investments and their availability to provide cash for use in current operations.

6. Derivatives

Diesel fuel price risk management

The Company is exposed to price risk with respect to diesel fuel purchased for use in its operations. The Company anticipates purchasing approximately 40 to 45 million gallons of diesel fuel for use in its operations during 2022. To protect the Company’s cash flows from increases in the price of diesel fuel for its operations, the Company purchased heating oil call options. At March 31, 2022, the Company had protected the price of expected diesel fuel purchases for 2022 with approximately 12 million gallons of heating oil call options with an average strike price of $2.61 per gallon. These positions are not designated as hedges for accounting purposes, and therefore, changes in the fair value are recorded immediately to earnings.

11

Coal price risk management positions

The Company may sell or purchase forward contracts, swaps and options in the over-the-counter coal market in order to manage its exposure to coal prices. The Company has exposure to the risk of fluctuating coal prices related to forecasted, index-priced sales or purchases of coal or to the risk of changes in the fair value of a fixed price physical sales contract. Certain derivative contracts may be designated as hedges of these risks.

At March 31, 2022, the Company held derivatives for risk management purposes that are expected to settle in the following years:

(Tons in thousands)

    

2022

Coal sales

 

221

Coal purchases

 

11

Tabular derivatives disclosures

The Company has master netting agreements with all of its counterparties which allow for the settlement of contracts in an asset position with contracts in a liability position in the event of default or termination. Such netting arrangements reduce the Company’s credit exposure related to these counterparties. For classification purposes, the Company records the net fair value of all the positions with a given counterparty as a net asset or liability in the Condensed Consolidated Balance Sheets. The amounts shown in the table below represent the fair value position of individual contracts, and not the net position presented in the accompanying Condensed Consolidated Balance Sheets. The fair value and location of derivatives reflected in the accompanying Condensed Consolidated Balance Sheets are as follows:

March 31, 2022

    

December 31, 2021

    

Fair Value of Derivatives

    

Asset

Liability

Asset

Liability

    

(In thousands)

Derivative

Derivative

Derivative

Derivative

Derivatives Not Designated as Hedging Instruments

 

  

 

  

 

  

 

  

 

  

 

  

Heating oil -- diesel purchases

 

8,547

 

 

  

 

1,219

 

 

  

Coal -- risk management

 

 

(12,838)

 

  

 

4,885

 

(2,203)

 

  

Total

$

8,547

$

(12,838)

 

  

$

6,104

$

(2,203)

 

  

Total derivatives

$

8,547

$

(12,838)

 

  

$

6,104

$

(2,203)

 

  

Effect of counterparty netting

 

 

 

  

 

(1,890)

 

1,890

 

  

Net derivatives as classified in the balance sheets

$

8,547

$

(12,838)

$

(4,291)

$

4,214

$

(313)

$

3,901

    

    

    

March 31, 

    

December 31, 

2022

2021

Net derivatives as reflected on the balance sheets (in thousands)

 

  

 

  

 

  

Heating Oil and coal

 

Other current assets

$

8,547

$

4,214

Coal

 

Accrued expenses and other current liabilities

 

(12,838)

 

(313)

$

(4,291)

$

3,901

The Company had a current asset representing cash collateral posted to a margin account for derivative positions primarily related to coal derivatives of $2.6 million and $2.8 million at March 31, 2022 and December 31, 2021, respectively. These amounts are not included with the derivatives presented in the table above and are included in “other current assets” in the accompanying Condensed Consolidated Balance Sheets.

12

The effects of derivatives on measures of financial performance are as follows:

Derivatives Not Designated as Hedging Instruments (in thousands)

Three Months Ended March 31,

Gain (Loss) Recognized

2022

2021

Coal risk management — unrealized

(3)

$

(15,519)

$

(528)

Coal risk management— realized

(4)

$

(9,074)

$

138

Heating oil — diesel purchases

(4)

$

6,801

$

Location in statement of operations:

(1)— Revenues
(2)— Cost of sales
(3)— Change in fair value of coal derivatives and coal trading activities, net
(4)— Other operating (income) expense, net

At March 31, 2022 and 2021, the Company did not have any derivative contracts designated as hedging instruments, respectively.

7. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

    

March 31, 

    

December 31, 

2022

2021

(In thousands)

Payroll and employee benefits

$

44,901

$

55,898

Taxes other than income taxes

 

64,061

 

61,582

Interest

 

4,322

 

3,439

Workers’ compensation

 

16,290

 

14,202

Asset retirement obligations

 

21,781

 

21,781

Coal derivatives

12,838

313

Other

 

15,007

 

10,089

$

179,200

$

167,304

8. Debt and Financing Arrangements

    

March 31, 

    

December 31, 

2022

2021

 

(In thousands)

Term loan due 2024 ($8.8 million face value)

$

8,752

$

280,353

Tax Exempt Bonds ($98.1 million face value)

98,075

98,075

Convertible Debt ($155.3 million face value)

155,250

121,617

Other

 

60,720

 

70,836

Debt issuance costs

 

(7,896)

 

(10,208)

314,901

560,673

Less: current maturities of debt

 

182,611

 

223,050

Long-term debt

$

132,290

$

337,623

13

Term Loan Facility

In 2017, the Company entered into a senior secured term loan credit agreement in an aggregate principal amount of $300 million (the “Term Loan Debt Facility”) with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, and the other financial institutions from time to time party thereto (collectively, the “Lenders”). The Term Loan Debt Facility was issued at 99.50% of the face amount and will mature on March 7, 2024. The term loans provided under the Term Loan Debt Facility (the “Term Loans”) are subject to quarterly principal amortization payments in an amount equal to $750,000. The interest rate on the Term Loan Debt Facility is, at the option of Arch Resources, either (i) LIBOR plus an applicable margin of 2.75%, subject to a 1.00% LIBOR floor, or (ii) a base rate plus an applicable margin of 1.75%.

The Term Loan Debt Facility is guaranteed by all existing and future wholly owned domestic subsidiaries of the Company (collectively, the “Subsidiary Guarantors” and, together with Arch Resources, the “Loan Parties”), subject to customary exceptions, and is secured by first priority security interests on substantially all assets of the Loan Parties, including 100% of the voting equity interests of directly owned domestic subsidiaries and 65% of the voting equity interests of directly owned foreign subsidiaries, subject to customary exceptions.

During the first quarter of 2022, the Company repaid $271.5 million of the Term Loans leaving a remaining balance of $8.8 million. The remaining balance of $8.8 million was left as certain terms and conditions governing the Term Loan are incorporated into the Company’s outstanding indebtedness. As a result of the repayment, the Company recorded $4.1 million as “net loss resulting from early retirement of debt” in the accompanying Condensed Consolidated Statement of