New Issue: Foresight Energy sells upsized $200 million tap of 9 5/8% notes due 2017 at 103

By Paul A. Harris

Portland, Ore., Oct. 24 - Foresight Energy priced an upsized $200 million add-on to its 9 5/8% senior notes due Aug. 15, 2017 (Caa1/B/) at 103 to yield 8.673% on Wednesday, according to a syndicate source.

The reoffer price came rich to the 102.75 price talk.

Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. were the joint bookrunners for the quick-to-market issue, which was upsized from $110 million.

Proceeds, including $40 million resulting from the upsize, will be used to fund a dividend. The remainder will be used to repay revolver debt.

The issuer is a Palm Beach Gardens, Fla.-based coal company.

Issuers:	Foresight Energy LLC and Foresight Energy Finance Corp.
Face amount:	$200 million
Proceeds:	$206 million
Maturity:	Aug. 15, 2017
Security description:	Add-on to 9 5/8% senior notes due Aug. 15, 2017
Bookrunners:	Morgan Stanley & Co. LLC, Citigroup Global Markets Inc.
Coupon:	9 5/8%
Price:	103
Yield to worst:	8.673%
Spread:	813 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Aug. 15, 2014, then callable at 104.813, 102.406, par on and after Aug. 15, 2016
Equity clawback:	35% at 109.625 until Aug. 15, 2013
Change-of-control put:	101%
Trade date:	Oct. 24
Settlement date:	Oct. 31
Ratings:	Moody's: Caa1
	Standard & Poor's: B
Distribution:	Rule 144A for life and Regulation S
Price talk:	102.75
Marketing:	Quick to market
Original issue:	$400 million issue priced at 99.374 to yield 9¾% in August 2010
Fungibility:	Immediately fungible
Total issue size:	$600 million

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