Arch Coal greenshoe exercised, raising convertibles to $143.75 million

New York, Feb. 3 - Arch Coal, Inc. said the underwriters exercised in full the $18.75 million over-allotment option on its recent offering of perpetual cumulative convertible preferred stock, raising the total size to $143.75 million.

The St. Louis coal miner originally sold $125 million of the convertibles after the market closed on Jan. 27 to yield 5% with a 27.5% initial conversion premium.

The deal came to market via bookrunner Merrill Lynch & Co. and was reduced at pricing from a planned size of $150 million.

Proceeds will be used to repay bank debt, for working capital and for general corporate purposes.

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