By Susanna Moon
Chicago, Sept. 19 - James River Coal Co. said investors had tendered $3.9 million, or 7.6%, of its 4.5% convertible senior notes due 2015 and $38.3 million, or 74.2%, of its 3.125% convertible senior notes due 2018 in the exchange offers that ended at 5 p.m. ET on Sept. 18.
The company will issue $19.3 million of new notes in exchange for the tendered notes, according to a company press release.
After settlement on Sept. 23, about $47.3 million principal amount of 4.5% convertibles and $13.3 principal amount of 3.125% convertibles will remain outstanding.
As previously announced, the company offered to issue up to $31,739,000 principal amount of its 10% convertible senior notes due 2018 for any and all of its outstanding 4.5% convertibles and up to $22,705,000 principal amount of the new notes for any and all of its outstanding 3.125% convertibles.
The offers were extended from 11:59 p.m. ET on Sept. 11. The offers began Aug. 13.
As of the most recent deadline, holders had tendered about $3.6 million principal amount, or about 7%, of the 4.5% convertibles and $38.5 million principal amount, or 75%, of the 3.125% convertibles.
The total exchange value for each $1,000 principal amount was $620 of new notes for the 4.5% convertibles and $440 of new notes for the 3.125% convertibles, as previously noted.
The company will also pay accrued interest to but excluding the settlement date in cash.
Tendered notes may be withdrawn by the end of the offer.
U.S. Bank NA is the exchange agent and information agent.
10% convertibles
The 10% convertibles will be tacked on to the $123,261,000 principal amount of notes issued on May 22 in separate, privately negotiated exchange transactions.
As previously reported, the company issued $55.8 million of 10% convertibles in exchange for $90 million of 4.5% convertibles and $67.5 million of 10% convertibles in exchange for $153.4 million of 3.125% convertibles.
The conversion price of the 10% convertibles is $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 $2.13 (Nasdaq: JRCC) on Aug. 12.
The company may force conversion of the 10% notes if the daily volume-weighted average price of its stock is $7.50 or greater for at least 20 trading days in any 30-trading-day period.
The 10% convertibles have a change-of-control put option.
The ranking of the 10% convertibles is the same as the old convertibles except that the 10% convertibles are guaranteed by some subsidiaries of the company.
James River is a coal company based in Richmond, Va.
| Issuer: | James River Coal Co.
|
| Issue: | Add-on to $123,261,000 principal amount of convertible notes
|
| Amount: | $19.3 million
|
| Maturity: | 2018
|
| Coupon: | 10%
|
| Conversion price: | $5.00
|
| Original issue date: | May 22
|
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