By Susanna Moon
Chicago, May 17 - James River Coal Co. said it will issue $123.3 million of new 10% senior convertible notes due 2018 in exchange for about $243.4 million of two series of existing convertibles.
Holders agreed to the exchange in separate privately negotiated agreements with holders of the 4.5% senior convertible notes due 2015 and 3.125% senior convertible notes due 2018, according to a company press release and an 8-K filing with the Securities and Exchange Commission.
The company said it will issue $55.8 million of 10% convertibles in exchange for $90 million of the 4.5% convertibles and will issue $67.5 million of 10% convertibles in exchange for $153.4 million of the 3.125% convertibles.
The conversion price of the new 10% convertibles will be $5.00, compared with $25.78 for the 4.5% convertibles and $30.55 for the 3.125% convertibles.
The company's shares closed at $2.22 (Nasdaq: JRCC) on May 16.
The company may force conversion of the new notes if the daily volume-weighted average price of its stock is at or above $7.50 for at least 20 trading days in any 30-trading-day period, the release noted.
The ranking of the new convertibles will be the same as the existing convertibles except that the new convertibles will be guaranteed by some subsidiaries of the company.
After settlement, there will be $51.2 million of 4.5% convertibles and $51.6 million of 3.125% convertibles outstanding.
James River is a coal producer based in Richmond, Va.
| Issuer: | James River Coal Co.
|
| Issue: | Senior convertible notes
|
| Amount: | $123.3 million
|
| Maturity: | June 1, 2018
|
| Coupon: | 10%
|
| Conversion price: $5.00
|
| Conversion ratio: | 200
|
| Settlement date: | May 22
|
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