Walter Energy to issue stock, pay cash for $52 million 9 7/8% notes

By Susanna Moon

Chicago, Nov. 18 – Walter Energy, Inc. agreed to issue stock and pay cash in exchange for $52 million principal amount of its 9 7/8% senior notes due 2020.

The company agreed to issue two noteholders 3.9 million common shares and pay $5.2 million in cash, according to an 8-K filing with the Securities and Exchange Commission.

The company will not receive any cash proceeds as a result of the exchange.

The company said it executed the transaction to reduce its debt and interest cost, increase its equity and improve its balance sheet.

The company may engage in additional debt exchanges if “favorable opportunities arise.”

Walter is a Birmingham, Ala.-based pure-play metallurgical coal producer.

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