Foresight Energy talks $500 million seven-year notes at 11¼% area yield; pricing Thursday

By Paul A. Harris

Portland, Ore., March 15 – Foresight Energy LLC and Foresight Energy Finance Corp. talked their $500 million offering of seven-year second-lien senior secured notes (Caa2/CCC/CCC) to yield in the 11¼% area, according to a syndicate source.

Books were scheduled to close on Wednesday, and the Rule 144A and Regulation S for life offering is set to price on Thursday.

Goldman Sachs & Co. is the left bookrunner. Huntington, Deutsche Bank Securities Inc. and Citigroup Global Markets Inc. are the joint bookrunners.

The notes come with three years of call protection.

The St. Louis-based producer and marketer of thermal coal plans to use the proceeds, together with its new credit facility, proceeds from the Murray Energy investment and cash from the balance sheet, to repay and terminate its existing term loan and revolver, and redeem its second-lien notes and exchangeable PIK notes.

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