By Paul A. Harris
Portland, Ore., Dec. 7 - Armstrong Energy, Inc. priced a $200 million issue of seven-year senior secured notes (B3/B-/) at 96.567 on Friday, according to market source.
The price gives a yield of 12½%.
The deal had been talked to yield 10½% to 10¾%
Stifel Nicolaus & Co. Inc. ran the books.
Proceeds will be used to repay the company's senior secured credit facility and for general corporate purposes, including capital expenditures and potential reserve acquisitions.
The issuer is a St. Louis-based diversified producer of low-chlorine, high-sulfur thermal coal from the Illinois Basin.
| Issuer: | Armstrong Energy, Inc.
|
| Amount: | $200 million
|
| Maturity: | Dec. 15, 2019
|
| Securities: | Senior secured notes
|
| Bookrunner: | Stifel Nicolaus & Co. Inc.
|
| Co-manager: | PNC Capital Markets LLC
|
| Coupon: | 11¾%
|
| Price: | 96.567
|
| Yield: | 12½%
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2016, then callable at a premium
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 10½% to 10¾%
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
