By Paul A. Harris
Portland, Ore., Dec. 9 – Westmoreland Coal Co. priced a downsized $350 million issue of 8¾% seven-year senior secured first-lien notes (Caa1/B/) at 98.708 to yield 9% on Monday, according to a syndicate source.
The issue was downsized from $400 million.
The yield printed 37.5 basis points beyond the wide end of yield talk in the 8½% area.
BMO Capital Markets was the left bookrunner. Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC were the joint bookrunners.
The Englewood, Colo.-based independent coal company plans to use the proceeds to refinance debt.
Westmoreland Coal has 13 coal mines in the western United States and Canada, as well as a stake in an activated carbon plant and char production facility and two coal-fired power generation units.
| Issuer: | Westmoreland Coal Co.
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| Amount: | $350 million, decreased from $400 million
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| Maturity: | Jan. 1, 2022
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| Securities: | Senior secured first-lien notes
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| Left bookrunner: | BMO Capital Markets
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| Joint bookrunners: | Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC
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| Coupon: | 8¾%
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| Price: | 98.708
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| Yield: | 9%
|
| Spread: | 698 bps
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| First call: | Jan. 1, 2018 at 106.563
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| Equity clawback: | 35% at 108.75 until Jan. 1, 2018
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| Trade date: | Dec. 8
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| Settlement date: | Dec. 16
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| Ratings: | Moody's: Caa1
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| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% area
|
| Marketing: | Roadshow
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