Westmoreland Finalizes Restructuring Deal
Transforms the Company Balance Sheet and Unlocks a Range of Forward-Looking Business Initiatives in a New Enterprise Offering Sustainable Practices, Services and Products.
Denver, Colorado, May 8, 2023 – Westmoreland Mining Holdings, LLC (“Westmoreland”), announced today that it has closed on a restructuring deal with its investors that will substantially enhance the foundations of the business by right sizing the Second Lien Debt Facility to align with the Company’s long-term strategic direction. At the same time, Westmoreland will launch a new enterprise called “WestMET” or more appropriately, Westmoreland Minerals, Energy and Technology.
Forged from innovative ideas and concepts that were ‘hiding in plain sight’ within the traditional asset base of Westmoreland, WestMET encapsulates an exciting portfolio of sustainable products and services that will meet the needs and wants of the world today and in the future.
By harvesting the latent value existing in and around former mining hubs and grid connections, WestMET will emerge with three core business segments, including a unique agriculture operation developed from one of the foremost humalite deposits in North America, an advanced skills and technology platform focused on large scale reclamation and Earth Restoration Services (“ERS”), and a Renewable Energy incubator with the potential to optimize the highly prized real estate surrounding coveted grid interconnectors with new forms of power generation that will serve to galvanize the current energy transition.
“After an extended period of negotiations, planning, and hard work, I am thrilled to announce the successful closing of this pivotal restructuring deal with our investors. This move reinforces the strong alignment between all our stakeholders to ensure that our business adapts and evolves to the meet the challenges and opportunities that now face our industry,” said Westmoreland Chief Executive Officer Martin Purvis.
“For Westmoreland to have both the window of opportunity and ability to create a transformational new enterprise – while improving our balance sheet – is a noteworthy achievement for one of North America’s oldest mining companies.”
“This is without doubt a compelling and timely transaction for our business” said Heath Hill, Westmoreland’s Chief Financial Officer. “Crossing the finishing line with our investors on what has been a relatively complex transaction really sets Westmoreland up for the future. This deal substantially enhances our creditworthiness and provides us with the financial flexibility to respond to shifting market forces and emerging growth opportunities that align with our robust skills, long-standing relationships, and unique asset base. We are very grateful for the continued support of our investors and excited about the path ahead for both companies.”
While the two companies will emerge as separate entities with independent boards and leadership teams, Westmoreland will continue to provide as-needed back office and management resources for WestMET for the next 18 months, through a Shared Services Agreement.
Jeffrey Kukura, Westmoreland’s Senior Vice President for Organizational Transformation over the past two years, will transfer to WestMET after closing and take the lead in the future development of the new business.
“The new WestMET team is already in place and well equipped with the experience and skills necessary to unlock the potential that continues to emerge as we develop these new business sectors and opportunities. There is no doubt that this enterprise is being formed at a time when sustainable products and services are at the forefront of investment decisions and WestMET ticks all the right boxes in this regard,” Kukura said.
For more information, please contact Jon Heroux, Corporate Counsel for External Affairs at (720) 273-9265 or via email at JHeroux@Westmoreland.com.