JW Resources Acquires Thermal Coal Mining Operations from Appolo Fuels

KNOXVILLE, Tenn.--()--JW Resources, Inc., (“JW Resources” or the “Company”), a privately held management and holding company owned by Bayside Capital, Inc. ("Bayside") and Lawrence M. Clark, Jr., announced today that through its newly-formed subsidiary Middlesboro Mining, Inc., (“Middlesboro”) it has completed the acquisition of the Bell County, Kentucky and Claiborne County, Tennessee thermal coal mining operations (the “Middlesboro Operations”) of Appolo Fuels, Inc. (“Appolo”), including approximately 33,000 acres containing an estimated 43 million tons of proven and probable high-quality thermal coal reserves in the Central Appalachian (“CAPP”) coal basin.

Middlesboro will primarily serve the industrial coal markets and is pleased to continue Appolo’s long-standing supply relationships with several “blue-chip” customers. Assets acquired in the transaction include all permits, contracts and real property leases associated with the Middlesboro Operations, as well as all related infrastructure, including a preparation plant, a fully permitted refuse facility with significant remaining useful life, and a dual-service unit train load-out facility providing access to both the CSX and Norfolk Southern rail networks. The Middlesboro Operations’ diverse mix of surface, highwall, and underground mines will be overseen by seasoned mining executive William R. “Bill” Snodgrass, who has managed the Middlesboro Operations in the past and is currently Chief Operating Officer of JW Resources.

JW Resources is a management and holding company focused on identifying, acquiring and operating coal mining and related assets in the United States. The Company is majority-owned by affiliates of Bayside and was formed and capitalized in partnership with Mr. Clark, an experienced institutional investor with a proven track record investing in the coal and natural resources sectors. JW Resources currently operates the Straight Creek and Red Bird thermal coal operations (the “Straight Creek Operations”) in eastern Kentucky, which were acquired in February 2013. Through the combined Straight Creek and Middlesboro Operations, JW Resources now controls approximately 81,000 acres containing an estimated 85 million tons of proven and probable thermal coal reserves serving the utility and industrial markets, as well as three unit train load-out facilities, two preparation plants, and three permitted refuse facilities.

Mr. Clark commented: "With Middlesboro’s stable industrial customer base and Straight Creek’s utility supply business, JW Resources now enjoys a diverse mix of customer and end-market exposure, all serviced from our high-quality and low-cost reserves. We are particularly excited to add Middlesboro’s unique dual-service rail load-out to our strong collection of infrastructure assets; having access to both the CSX and NS rail networks provides us a significant competitive advantage in serving current and future utility customers.”

“We established JW Resources in partnership with Larry to acquire premier low-cost assets that are positioned to participate in the strong long-term global utility and industrial demand environment,” said Sean Ozbolt, Managing Director at Bayside Capital. “After acquiring the Straight Creek Operations we evaluated more than 50 add-on acquisition opportunities, and ultimately identified the Appolo assets as the best fit due to their low-cost operations, complementary industrial customer base and close proximity to Straight Creek. JW Resources is now a world-class CAPP coal operation that is well positioned to benefit from the improving utility market and the highly stable industrial market.”

About JW Resources, Inc.

Headquartered in Knoxville, Tennessee, JW Resources, Inc. is focused on identifying, acquiring and operating coal mining and related assets in the United States.

About Bayside Capital

Bayside Capital is an affiliate of H.I.G. Capital, a leading global private investment firm with more than $15 billion of equity capital under management. With over $4.5 billion of committed capital, Bayside is focused on providing capital solutions to address complex situations within short timeframes. Through improved access to capital or facilitating balance sheet realignments, Bayside can help support future strategies and expansion plans. Bayside has the ability to provide capital through a broad range of securities including asset-based and cash flow senior and subordinated debt, equity, debtor-in-possession facilities, and special situation loans. Bayside has the experience and resources to help companies quickly resume growth initiatives and improve their strategic position. For more information, please refer to the Bayside Capital website at www.bayside.com or contact:

Contacts

JW Resources, Inc.
Lawrence M. Clark, Jr., 865-240-4000
Chief Executive Officer
lclark@jwresourcesinc.com
or
Chris Halouma
Chief Financial Officer
chalouma@jwresourcesinc.com
or
Bayside Capital
Sean Ozbolt
Managing Director
sozbolt@bayside.com
or
Josh Porter
Principal
jporter@bayside.com

Release Summary

JW Resources, Inc., a privately held management and holding company owned by Bayside Capital, Inc. and Lawrence M. Clark, Jr., completed the acquisition of of Appolo Fuels, Inc.

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Contacts

JW Resources, Inc.
Lawrence M. Clark, Jr., 865-240-4000
Chief Executive Officer
lclark@jwresourcesinc.com
or
Chris Halouma
Chief Financial Officer
chalouma@jwresourcesinc.com
or
Bayside Capital
Sean Ozbolt
Managing Director
sozbolt@bayside.com
or
Josh Porter
Principal
jporter@bayside.com