Questions? +1 (202) 540-8337 Login
Trusted News Since 1995
A service for global professionals · Thursday, April 19, 2018 · 442,971,746 Articles · 3+ Million Readers

James River Coal Sells $172.50 Million Of Senior Notes

November 23, 2009 (FinancialWire) — James River Coal Co. (NASDAQ: JRCC ) has closed an offering of $150 million principal amount of 4.50% convertible senior notes due 2015 and an additional $22.50 million principal amount of notes in connection with the exercise by the initial purchasers of their over-allotment option on November 17, 2009.

The notes were sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

Interest on the notes will be paid semiannually at a rate of 4.50% per year. The notes will be convertible under certain circumstances and during certain periods at an initial conversion rate of 38.7913 shares of James River’s common stock per $1,000 principal amount of notes. This represents an initial conversion price of approximately $25.78 per share of James River common stock.

The company will see net proceeds from the sale of approximately $166.8 million. James River plans to use approximately $58.5 million of the net proceeds in connection with the termination of its letter of credit facility, and the remainder for working capital and general corporate purposes, which may include acquiring or investing in businesses or other assets or repayment of outstanding debt.

James River Coal was formed in 1988 through the purchase of McCoy Elkhorn and Bell County from Transco Coal Co. In 1992 it acquired the operations of Johns Creek Coal company and the Bevins Branch Preparation Plant, both of which are now operated under McCoy Elkhorn.

In June of 1995 the Leeco and Bledsoe operating companies were acquired through Transco Coal company. The Blue Diamond operating company was purchased in 1998. In 1999, James River acquired Shamrock Coal, which added mines, reserves, and a preparation plant and the Clover loadout facility to the Bledsoe complex. Triad was purchased in May of 2005.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Powered by EIN Presswire