James River Coal Prices $150 Million Of Senior Notes
November 16, 2009 (FinancialWire) — James River Coal Co. (NASDAQ: JRCC) has priced an offering of $150 million of 4.5% convertible senior notes due 2015.
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, representing an initial conversion price of around $25.78 per share of James River common stock, which is equal to a roughly 30% conversion premium over the $19.83 closing price of James River’s common stock on November 12.
James River also granted the initial purchasers of the notes an option to purchase up to an additional $22.50 million of the notes solely to cover over-allotments, if any.
The company will see net proceeds from the sale of around $145.0 million, or around $166.8 million if the over-allotment option is exercised in full).
James River plans to use around $57.3 million of the net proceeds in connection with the termination of its letter of credit facility, and the remaining for working capital and general corporate purposes, which may include acquiring or investing in business or other assets or repayment of outstanding debt.
Richmond, Virginia-based James River mines, processes and sells bituminous, steam- and industrial-grade coal through six operating subsidiaries located throughout eastern Kentucky and southern Indiana.
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