International Coal to hold make-whole conversion period for 4% convertibles, 9% convertibles

By Angela McDaniels

Tacoma, Wash., June 9 - International Coal Group, Inc. will begin a make-whole conversion period for its 4% convertible senior notes due 2017 and 9% convertible senior notes due 2012 after it is acquired by Arch Coal, Inc., according to a company news release.

Arch Coal is offering $14.60 for each share of International Coal common stock. Its tender offer will end on June 14, and the merger is expected to be completed the next day.

International Coal will send a notice of the fundamental change to the noteholders within 20 business days of Arch Coal's tender offer ending, and the make-whole conversion period will end 20 to 35 days after the notice is mailed.

Holders who convert during the make-whole conversion period will receive an amount in cash equal to the make-whole conversion ratio multiplied by $14.60.

The 9% notes are currently convertible at a rate of 163.8136 shares of International Coal stock per $1,000 principal amount of notes. The make-whole conversion ratio is 163.8859. For each $1,000 principal amount of notes converted during the make-whole period, holders will receive $2,392.73414.

The 4% notes are currently convertible at a rate of 172.0874 shares per $1,000 principal amount of notes. The make-whole conversion ratio is 179.0880. For each $1,000 principal amount of notes converted during the make-whole period, holders will receive $2,614.6848

International Coal's stock closed at $14.57 (NYSE: ICO) on June 9.

International Coal and Arch Coal are coal producers based in Scott Depot, W.Va., and St. Louis, respectively.

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