International Coal greenshoe lifts convertible notes to $115 million

By Marisa Wong

Milwaukee, March 16 - International Coal Group, Inc. announced that the underwriters of its previously announced offering of 4% convertible senior notes due 2017 exercised the $15 million over-allotment option in full, increasing the size of the offering to $115 million. The deal closed on Tuesday, according to a news release.

The company priced an upsized $100 million of seven-year convertibles on March 10 to yield 4% with an initial conversion premium of 30%.

The company also completed its public offering of 22,371,365 shares of its common stock at $4.47 per share on Tuesday. The underwriters have the option to purchase up to an additional 3,355,704 shares of common stock from International Coal to cover over-allotments.

UBS Securities LLC and Morgan Stanley & Co. Inc. were joint bookrunners for both offerings.

Net proceeds from both offerings, together with cash on hand, will be used to finance a previously announced cash tender to repurchase up to a total of $139.5 million principal amount of 9% convertible senior notes due 2012 and for general corporate purposes.

The coal producer is based in Scott Depot, W.Va.

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