Cloud Peak to redeem 8½% notes due 2019 on March 31 at 101.417

By Wendy Van Sickle

Columbus, Ohio, March 1 – Cloud Peak Energy Inc. will redeems its 8½% senior notes due 2019 on March 31, according to an 8-K filing with the Securities and Exchange Commission.

The redemption price will be 101.417 plus accrued interest to the redemption date, for a total payment of about $64.5 million.

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

Wilmington Trust Co. is the trustee of the notes.

As previously reported, the company said it would fund the redemption with proceeds of an offering of 13.5 million shares of its common stock with a greenshoe for 2 million additional shares.

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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