Why Walter Energy's Shares Dropped

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What: Shares of Walter Energy (NASDAQOTH: WLTGQ  ) dropped 17% today after canceling a loan refinancing.

So what: Forbes is reporting that Walter pulled $1.55 billion in loan refinancing due to market conditions. Volatility and a slight rise in interest rates recently has made it less attractive for companies to issue new debt, and Walter may have been unhappy with the terms investors were demanding. 

Now what: The metallurgical coal market is leaving producers burning cash at a rapid rate, and the industry will be forced to cut supply further. That leaves companies like Walter in a poor position, and now creditors may be losing confidence in the company, as well. I don't think this is a discount to buy on, and would be wary of stocks across the coal industry.

Interested in more info on Walter Energy? Add it to your watchlist by clicking here.

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  • Report this Comment On June 15, 2013, at 1:36 AM, rrdas wrote:

    Its good time to add BTU, ACI, WLT, ANR, CLD to portfolio. Within a year, these stocks will be doubled, as inflation kicks up.

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Related Tickers

9/28/2016 3:47 PM
WLTGQ $0.04 Down +0.00 +0.00%
Walter Industries,… CAPS Rating: **