New Issue: Arch Coal unit sells $250 million add-on to 6¾% notes of 2013 at 104.75

By Paul A. Harris

St. Louis, Oct. 19 - Arch Western Finance LLC, a unit of Arch Coal, priced a $250 million add-on to its 6¾% senior notes due July 1, 2013 (Ba3/BB) at 104.75 on Tuesday, resulting in a 5.879% yield to worst, according to a syndicate source.

Price talk was 104.5 to 105.

Citigroup, JP Morgan and Morgan Stanley ran the books for the Rule 144A issue.

Proceeds will be used to repay Arch Coal's revolving credit facility and for general corporate purposes.

Arch Coal is a St. Louis-based coal mining company.

Issuer:	Arch Western Finance LLC
Amount:	$250 million
Security description:	Add-on to 6¾% senior notes
Maturity:	July 1, 2013
Bookrunners:	Citigroup, JP Morgan, Morgan Stanley
Coupon:	6¾%
Price:	104.75
Yield to worst:	5.879%
Spread:	220 basis points
Call features:	Callable on or after July 1, 2008 at 103.375, 102.250, 101.125, par on July 1, 2011 and thereafter
Equity clawback:	Until July 1, 2006 for 35% at 106.75
Pricing date:	Oct. 19
Settlement date:	Oct. 22, with accrued interest
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Price talk:	104.5-105

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