James River Coal begins tender offer, consent bid for 9 3/8% notes

By Angela McDaniels

Tacoma, Wash., March 22 - James River Coal Co. began a cash tender offer and a consent solicitation for its 9 3/8% senior notes due 2012, according to a company news release.

Holders who tender will be deemed to have consented to the proposed amendments to the indenture, which would eliminate substantially all of the restrictive covenants and some events of default and related provisions. Holders may not deliver consents without tendering their notes.

The company will pay $1,015 for each $1,000 principal amount of notes. This includes a consent payment of $10.00 for each note delivered by the consent deadline, which is 5 p.m. ET on April 4.

Holders will also receive accrued interest up to but excluding the payment date.

The tender offer will expire at midnight ET on April 18.

The tender offer and the consent solicitation are subject to the receipt of consents from the holders of a majority of the notes by the consent deadline, the closing of James River's agreement to acquire International Resource Partners LP and its subsidiaries and the receipt by the company of enough proceeds from financings to repurchase the notes and complete the acquisition.

The dealer managers and solicitation agents are Deutsche Bank Securities Inc. (212 250-6429) and UBS Investment Bank (203 719-4210 or 888 719-4210). The information agent is D.F. King & Co., Inc. (212 269-5550 for banks and brokers; others call 800 549-6697).

James River is a coal mine based in Richmond, Va.

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