American Resources Corp (AREC)

[RandyKCMO]

Pretty Big News or this AM.

American Resources Corporation Announces Initial Closing of Strategic Debt Refinancing

Company Closes on Initial Tranche of New Credit Facility to Refinance Existing Debt and Fund Its Continued Growth of Metallurgical Carbon Production for Steelmaking

FISHERS, IN / ACCESSWIRE / April 2, 2020 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a supplier of raw materials to the rapidly growing global infrastructure marketplace with a primary focus on the extraction, processing and distribution of metallurgical carbon to the steel and specialty metals industries, is pleased to announce it has entered into an initial closing of $13.39 million credit facility comprised of $12.19 million of existing term loan and payables which will refinance existing indebtedness from the balance sheet, plus an additional $1.2 million to be used for continued production growth of metallurgical carbon. The structure enables the Company to raise up to a total of $25 million over the next 30 days unless expanded and or extended by the Company.
"We are extremely pleased with the continued support of our existing lender, business partners and new investors who have participated in this financing round. The closing of this initial tranche represents a significant milestone for us. Importantly, it positions the Company for future growth, gives us confidence and provides optionality during these volatile market conditions as consolidation opportunities are presented," stated Mark Jensen, Chairman and CEO of American Resources Corporation.
The closing of the initial tranche of this credit facility:

Extends substantial amount of senior debt for two years while maintaining a low-leveraged balance sheet;

Allows participants to convert into equity at a premium to current market prices;

Positions Company with a strong capital structure to navigate this period of economic uncertainty and enables company to be opportunistic when market conditions normalize; and

Enables the Company to capitalize on expanding worldwide infrastructure market over the next five years and beyond.

"I am proud of our team's many accomplishments over the past several months, including the restructuring our most recent......



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