H.I.G. Capital News


Sean Ozbolt
Managing Director

Bayside Capital
1450 Brickell Avenue
Miami, FL 33131
P 305.379.8686
F 305.379.3655

Bayside Capital Announces the Formation of JW Resources, Inc. and Completes the Acquisition of Thermal Coal Mining Operations From Xinergy Ltd.

MIAMI – February 1, 2013 – Bayside Capital, Inc. ("Bayside") announced today that its newly-formed portfolio company JW Resources, Inc. (“JW Resources”) has completed the acquisition of the Straight Creek and Red Bird thermal coal mining operations (the “Straight Creek Operations”) of Xinergy Ltd. (TSX:XRG) (“Xinergy”) for $47.2 million in cash. The Straight Creek Operations are located in eastern Kentucky and consist of approximately 48,000 acres containing an estimated 42 million tons of proven and probable high-quality thermal coal reserves.

Headquartered in Knoxville, TN, JW Resources is focused on identifying, acquiring and operating thermal and metallurgical coal mining and related assets in the United States. JW Resources, majority-owned by investment funds advised by Bayside, was formed with Lawrence M. Clark, Jr., an experienced institutional investor with a proven track record investing in the coal and natural resources industries.

Mr. Clark commented: "Given recent challenges in the thermal coal industry, it is an attractive time to acquire low-cost producers with substantial reserve life. We are excited to be partnering with Bayside, as its large and flexible capital base provides for an ideal sponsor to both support the Straight Creek Operations and capitalize on additional acquisition opportunities through the JW Resources platform."

“We established JW Resources in partnership with Larry to acquire premier 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. “We identified the Straight Creek Operations as an attractive platform due to its low-cost, high-quality CAPP coal assets and its world class operating team led by Bill Snodgrass.”

About Bayside Capital
Bayside Capital is an affiliate of H.I.G. Capital, a leading global private investment firm with more than $10 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