SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENTS

Acquisition of Buckingham Coal Company, LLC

On January 1, 2015, Westmoreland completed the acquisition of Buckingham Coal Company, LLC, an Ohio-based coal supplier (“Buckingham”), pursuant to an agreement dated January 1, 2015 among WCC Land Holding Company, Inc. an affiliate of the Company for a total cash purchase price of $34.0 million, subject to customary post-closing adjustments. The cash purchase price was placed in escrow at December 31, 2014 and is included in Restricted investments and bond collateral in the accompanying consolidated balance sheet.

Separately, WCC Land Holding Company, Inc. entered into a five-year coal supply agreement with Buckingham’s primary customer, AEP Generation Resources Inc., which includes an obligation to purchase a minimum of 5.5 million tons of coal.

Add-on Term Loan Facility

On January 22, 2015, the Company amended the Term Loan Credit Agreement to increase the borrowings by $75.0 million, for an aggregate principal amount of $425.0 million. The amendments to the Term Loan Credit Agreement were made in connection with the acquisition of Buckingham. Net proceeds were $71.0 million after a 2.5% discount, 1.5% broker fee, a consent fee of 1.17%, and $0.1 million of additional debt issuance costs.