Cloud Peak to sell $200 million 10-year notes for debt refinancing

By Paul A. Harris

Portland, Ore., Feb. 25 - Cloud Peak Energy Resources LLC plans to price a $200 million offering of 10-year senior notes (expected ratings B1/BB-) on Thursday, according to a market source.

Goldman Sachs & Co., RBC Capital Markets LLC, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Credit Agricole Securities (USA) Inc. and Wells Fargo Securities LLC are the joint bookrunners for the public offering.

BB&T Capital Markets, Comerica Securities Inc., PNC Capital Markets LLC and Stifel, Nicolaus & Co., Inc. are the co-managers.

The notes, which come with five years of call protection, are expected to settle on March 11.

The issuing entities will be Cloud Peak Energy Inc., a wholly owned subsidiary of Cloud Peak Energy Resources, and Cloud Peak Energy Finance Corp., a wholly owned direct subsidiary of Cloud Peak Energy Resources.

The Gillette, Wyo.-based coal producer plans to use the proceeds to fund a portion of the tender offer and consent solicitation for its 8¼% senior notes due 2017. In the event that the tender offer is not consummated or not all of the proceeds are used to fund the tender, remaining proceeds will be used to redeem any 2017 notes.

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