Arch Coal extends offer to encourage conversion of 5% preferreds

New York, Dec. 16 - Arch Coal, Inc. said it has extended its offer to encourage early conversion of its 5% perpetual cumulative convertible preferred stock.

The expiration is now midnight ET on Dec. 30 instead of midnight ET on Dec. 29.

In addition, the offer was amended to change the calculation to the volume-weighted average sales price over 10 trading days ending at the close of the second trading day before expiration of the offer instead of the reported closing sales prices during the five trading days ending at the close of the second trading day before expiration of the offer.

As announced on Dec. 1, the St. Louis coal producer will pay a premium of $3.50 in stock in addition to the regular conversion rate to holders who take advantage of the offer.

The amount of stock for the premium will be calculated using the above formula.

Under the original terms, the preferreds would have converted into 2.3985 shares each at the time the offer was announced.

The offer ends at midnight ET on Dec. 29.

Arch said it is carrying out the offer to reduce its fixed dividend obligations and to improve its overall credit standing.

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