Warrior Met Coal sets roadshow for $350 million seven-year notes

By Paul A. Harris

Portland, Ore., Oct. 19 – Warrior Met Coal, Inc. plans to start a roadshow on Friday in Boston for a $350 million offering of seven-year senior secured notes, according to market sources.

The roadshow continues in New York on Monday and Tuesday and will also be in New Jersey on Tuesday, then moves to Los Angeles on Wednesday and to San Francisco on Oct. 26.

Investor conference calls are scheduled for noon ET on Friday and Monday.

The Rule 144A and Regulation S for life notes come with initial guidance in the mid-7% area.

Goldman Sachs & Co. is the left bookrunner. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, BMO Securities and RBC Capital Markets LLC are the joint bookrunners.

Apollo, Blackstone and KKR are the co-managers.

The notes become callable after three years at par plus 50% of the coupon. A special call provision would allow the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The Brookwood, Ala.-based producer and exporter of metallurgical coal plans to use the proceeds, together with approximately $260 million cash on hand, to pay a special cash dividend of about $600 million during 2017.

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