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International Coal offers to buy back 9%, 4% convertibles at par
By Angela McDaniels
Tacoma, Wash., July 13 - International Coal Group, Inc. offered to repurchase its 9% convertible senior notes due 2012 and 4% convertibles senior notes due 2017, according to a news release from parent Arch Coal, Inc.
A fundamental change occurred on June 14 when Arch Coal completed its tender offer for International Coal's common stock for $14.60 per share. International Coal became a subsidiary of Arch Coal the next day.
Holders who choose to have their convertibles repurchased will receive par plus accrued interest up to but excluding the repurchase date, which is scheduled for Aug. 17.
Holders of the 9% convertibles have until 5 p.m. ET on Aug. 12 to elect to have their convertibles repurchased. The deadline is 5 p.m. ET on Aug. 16 for the 4% convertibles.
A make-whole conversion period will run through Aug. 17.
As previously reported, holders who convert during the make-whole conversion period will receive an amount in cash equal to the make-whole conversion ratio multiplied by $14.60.
For the 9% convertibles, the make-whole conversion ratio is 163.8859, which will result in a payment of $2,392.73414 per $1,000 principal amount of notes. Before the acquisition, the conversion ratio was 163.8136.
For the 4% convertibles, the make-whole conversion ratio is 179.0880, which will result in a payment of $2,614.6848 per $1,000 principal amount of notes. Before the acquisition, the conversion ratio was 172.0874.
The paying agent for the repurchase offer is Bank of New York Mellon Trust Co., NA (800 254-2826).
International Coal and Arch Coal are coal producers based in Scott Depot, W.Va., and St. Louis, respectively.
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