By Paul A. Harris
St. Louis, Nov. 10 - Griffin Coal Mining Co. priced a $400 million issue of 10-year senior notes (Ba2/BB-) at par to yield 9½% on Friday, according to an informed source.
The yield came at the wide end of the 9¼% to 9½% price talk.
Call protection was extended to cover the life of the bond, from an initial five years of call protection.
Merrill Lynch & Co. ran the books for the Rule 144A notes.
Proceeds will be used to repay debt and fund capital expansion and investments.
Griffin Coal is a private coal mining company based in Western Australia.
| Issuer: | Griffin Coal Mining Co.
|
| Amount: | $400 million
|
| Maturity: | Dec. 1, 2016
|
| Security description: | Senior notes
|
| Bookrunner: | Merrill Lynch & Co.
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| Spread: | 492 bps
|
| Call protection: | Non-callable for life with a make-whole call at Treasuries plus 50 bps (call protection extended from five years)
|
| Equity clawback: | Until Dec. 1, 2009 for 35% at 109.50
|
| Trade date: | Nov. 10
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A
|
| Price talk: | 9¼% to 9½%
|
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