January 6, 2010
ATEL Leasing Corporation is pleased to announce the funding of a $47 million dollar lease with The Sabine Mine Co.
Sabine is a wholly owned subsidiary of the North American Coal division of publicly traded NACCO Industries (ticker symbol NC). The funding consisted of two tranches closed in August and December of 2009. The transaction involved the comprehensive rebuild and leasing of two Bucyrus Erie Model 1570 Walking Dragline Shovels. The shovels are used to excavate lignite coal which is then used to generate electricity at the Pirkey power plant operated by Southwestern Electric Power Company located in Texas.
"ATEL's solution was a true "win-win" arrangement with Sabine. The replacement cost of a new dragline is prohibitive and the waiting period can take up to 24 months. This lease enables the mine to operate at high production levels for a relatively low cost. The lease also allowed the mine to lock in a fixed rate to protect against potential future price increases. The creative financing solution exemplifies ATEL's goal of financing "mission critical" assets to strong credit worthy companies." commented Bill Bullock, Senior Vice President of ATEL Leasing Corporation.