James River Coal to offer US$125 million convertible senior notes

Thursday, Nov 12, 2009

James River Coal Company, announced today that it intends to offer, subject to market conditions and other factors, $125 million aggregate principal amount of convertible senior notes due 2015 (the "Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). James River also intends to grant to the initial purchasers of the Notes an option to purchase up to an additional $18.75 million aggregate principal amount of the Notes solely to cover over-allotments, if any.

The Notes will be general unsecured senior obligations of James River, will pay interest semi-annually, and will be convertible during certain periods and under certain circumstances. Upon conversion, holders of the Notes will receive, at the election of James River, cash, shares of James River's common stock or a combination of cash and shares of James River's common stock. The interest rate, conversion rate and other terms are to be determined by negotiations between James River and the initial purchasers.

James River intends to use approximately $57.3 million of the net proceeds in connection with the termination of our letter of credit facility, and the remaining for working capital and general corporate purposes, which may include acquiring or investing in business or other assets or repayment of outstanding debt.

This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities. The Notes and the underlying common stock issuable upon conversion have not been registered under the Securities Act or any applicable state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.

Source: PR Newswire