International Coal sets tender price in offer to buy 9% convertibles

New York, April 1 - International Coal Group, Inc. said it will pay $1,191.33 per $1,000 principal amount in its tender offer for any and all of its $139.5 million of 9% convertible senior notes due 2012.

The price was set according to a previously announced formula as the sum of 98.288 times $4.54, the arithmetic average of the daily volume-weighted average prices of the company's common stock beginning on March 8 and ending on April 1, plus $745.10. The calculation was subject to a minimum purchase price of $1,064.54 and a maximum purchase price of $1,359.40.

International Coal announced the tender for the convertibles on March 8 along with a tender for any and all of its $175 million of 10¼% notes due 2013.

The 9% convertibles offer will end at midnight ET on April 5.

This offer is conditioned on the company raising a minimum of $100 million in aggregate gross proceeds through a concurrent offering of common stock and $75 million via a concurrent offering of convertible notes at or prior to the end of the offer.

Holders will also receive accrued interest.

For both offers, UBS Investment Bank (888 719-4210 or call collect 203 719-4210) and Morgan Stanley (800 624-1808 or call collect 212 761-5384) are the dealer managers. D. F. King & Co., Inc. is the information agent (212 269-5550 for banks and brokers or 800 431-9633).

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