By Paul A. Harris
Portland, Ore., Jan. 23 - Westmoreland Coal Co. priced a downsized $125 million issue of 10¾% senior secured notes due Feb. 1, 2018 (Caa2/CCC+) at 95.492 to yield 11.82% on Monday, according to a market source.
The re-offer price came in line with preliminary guidance of 95 to 96.
Gleacher & Co. Securities Inc. ran the books for the deal, which was downsized from $130 million.
The proceeds, together with cash on hand, are expected to be used to finance the acquisition of the Kemmerer Mine, to provide reclamation bonding collateral and to fund initial Kemmerer working capital.
The notes come with substantially the same terms as the $150 million issue of 10¾% notes due Feb. 1, 2018, which were priced at 95 to yield 11.82 in February 2011.
Westmoreland is an Englewood, Colo.-based independent coal company.
| Issuer: | Westmoreland Coal Co.
|
| Amount: | $125 million
|
| Maturity: | Feb. 1, 2018
|
| Securities: | 10¾% senior secured notes due Feb. 1, 2018
|
| Bookrunner: | Gleacher & Co. Securities Inc.
|
| Coupon: | 10¾%
|
| Price: | 95.492
|
| Yield: | 11.82%
|
| First call: | Feb. 1, 2015 at 103.583
|
| Equity clawback: | 35% equity clawback at 110.75 until Feb. 1, 2015
|
| Trade date: | Jan. 23
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Guidance: | 95 to 96
|
| Marketing: | Roadshow
|
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