Arch Coal subsidiary gets needed consents to amend 6¾% senior notes

By Marisa Wong

Madison, Wis., May 15 - Arch Coal, Inc. announced that indirect subsidiary Arch Western Finance, LLC completed the consent solicitation with respect to its $450 million of 6¾% senior notes due 2013.

As of 5 p.m. ET on May 14, the consent expiration, holders representing $304,004,000 principal amount of the notes tendered and delivered their consents.

Arch Western Finance began a cash tender offer for any and all of the notes on May 1. In connection with the tender offer, the subsidiary solicited consents from noteholders for certain proposed amendments to the indenture governing the notes.

The consents received exceeded the minimum required to amend the indenture. As a result, Arch Western Finance and trustee Bank of New York Mellon Trust Co., NA have executed a supplemental indenture that eliminates most of the covenants and certain default provisions in the indenture and reduces the minimum notice period in the optional redemption provision of the notes from 30 days to three days.

Arch Western Finance will make a cash payment of $1,002.50, which includes a $30.00 consent payment, per $1,000 principal amount of notes, to holders who tendered prior to the consent expiration.

Holders will also receive accrued interest up to but excluding the initial settlement date. The initial settlement date will be a business day of Arch Western Finance's choosing promptly following the satisfaction or waiver of certain conditions of the tender offer.

The tender offer will expire at 11:59 p.m. ET on May 29, with final settlement expected to occur on the following business day.

Holders who tender their notes after the consent expiration but before the expiration time will be eligible to receive $972.50 per $1,000 of notes, along with accrued interest up to, but not including, the final settlement date.

Bank of America Merrill Lynch (888 292-0070 or 980 387-3907) is the dealer manager and solicitation agent for the tender offer. Global Bondholder Services Corp. (212 430-3774 for banks and brokers only or 866 387-1500) is the depositary and information agent.

Arch Coal is a coal producer and marketer based in St. Louis.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.