New Issue: International Coal prices $200 million 9 1/8% eight-year notes at 99.298 to yield 9¼%

By Paul A. Harris

St. Louis, March 11 - International Coal Group, Inc. priced a $200 million issue of 9 1/8% eight-year senior secured second-priority notes (Caa1/BB-/) at 99.298 to yield 9¼% on Thursday, according to an informed source.

The yield printed at the tight end of the 9¼% to 9½% price talk.

Morgan Stanley & Co. Inc. and UBS Investment Bank were the joint bookrunners. PNC Capital Markets LLC was a co-manager.

Proceeds will be used to fund the purchase of some of the company's existing senior notes and for general corporate purposes.

The issuer is a Scott Depot, W.Va.-based producer of coal.

Issuer:	International Coal Group, Inc.
Face amount:	$200 million
Proceeds:	$198,596,000
Maturity:	April 1, 2018
Securities:	Senior secured second-priority notes
Bookrunners:	Morgan Stanley & Co. Inc., UBS Securities LLC
Co-manager:	PNC Capital Markets LLC
Coupon:	9 1/8%
Price:	99.298
Yield:	9¼%
Spread:	587 bps
Call features:	Make-whole call at Treasuries plus 50 bps until April 1, 2014, then callable at 104.563, 102.281, par on and after April 1, 2016
Equity clawback:	35% at 109.125 through April 1, 2013
Trade date:	March 11
Settlement date:	March 22
Ratings:	Moody's: Caa1
	Standard & Poor's: BB-
Distribution:	SEC registered
Price talk:	9¼% to 9½%

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