Cloud Peak gets no additional tenders for 8¼% notes, calls remainder

By Angela McDaniels

Tacoma, Wash., March 25 - Cloud Peak Energy Inc. subsidiary Cloud Peak Energy Resources LLC completed its tender offer for Cloud Peak Energy Finance Corp.'s 8¼% senior notes due 2017, and all of the notes that were not tendered in the offer will be redeemed, according to an 8-K filing with the Securities and Exchange Commission.

The tender offer began on Feb. 25 and ended at 11:59 p.m. ET on March 24.

As previously reported, holders had tendered $278.4 million principal amount, or 92.81%, of the $300 million notes as of 5 p.m. ET on March 10, the consent date.

No additional notes were tendered after the consent date.

For each $1,000 principal amount, the company paid $1,046.50, which includes a $30.00 consent payment, plus accrued interest up to the settlement date, which was March 11.

The remaining notes will be redeemed at 104.125% of par plus accrued interest on March 28.

The company solicited consents to amendments to shorten to three business days the minimum notice period for optional redemptions and eliminate substantially all of the restrictive covenants and some event-of-default provisions.

Enough consents were received to effect the amendments, which become operative once the company purchased the notes.

The tender offer was conditioned on the execution of a supplemental indenture and the receipt of at least $200 million of financing.

The company priced a $200 million issue of 10-year senior notes (B1/BB-/) at par to yield 6 3/8% on Feb. 27.

The dealer manager and solicitation agent was Goldman Sachs & Co. (212 357-6436 or 800 828-3182). The tender agent and information agent was Global Bondholder Services Corp. (212 430-3774 for banks and brokers and 866 470-4300 for others).

Cloud Peak is a Gillette, Wyo.-based coal producer.

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