Cloud Peak to redeem 8½% notes due 2019 via proceeds of stock sale

By Wendy Van Sickle

Columbus, Ohio, Feb. 22 – Cloud Peak Energy Inc. plans to fully redeem its outstanding 8½% senior notes due 2019 with proceeds of an offering of 13.5 million shares of its common stock with a greenshoe for 2 million additional shares, according to a press release.

The notes will be redeemed at par plus accrued interest to the redemption date. Any additional proceeds from the stock offering will be used for general corporate purposes.

As previously reported, $237,906,000 of the original $300 million of 8½% notes were tendered for exchange for new 12% second-lien notes due 2021 in an offer that ended on Oct. 12, leaving $62,094,000 of the notes outstanding.

Credit Suisse, JPMorgan and Jefferies are acting as joint bookrunning managers for the stock offering.

Cloud Peak is a Gillette, Wyo., coal mining company.

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