WASHINGTON (dpa-AFX) - Arch Coal Inc. (ACI) announced the pricing of its private offering of $1.0 billion principal amount of its 7.000% senior notes due 2019 and $1.0 billion principal amount of its 7.250% senior notes due 2021, in each case at an issue price of 100% of the principal amount.
The company said that it will pay interest on each series of the Senior Notes on June 15 and December 15 of each year, beginning on December 15, 2011. Each series of the Senior Notes will be guaranteed by Arch's subsidiaries that guarantee indebtedness under Arch's secured credit facility.
The offering is subject to market and other conditions, including the consummation of Arch's proposed acquisition of International Coal Group, Inc. or 'ICG'.
The company noted that it plans to use the net proceeds of the offering to partially fund its acquisition of ICG and related transactions, including the redemption, payment of cash resulting from conversion of, or other retirement of certain outstanding ICG indebtedness. The closing of the Senior Notes offering is expected to occur on June 14, 2011.
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