Magnum Coal to start roadshow Tuesday for $350 million seven-year notes

By Paul A. Harris

St. Louis, June 18 - Magnum Coal Co. will start a roadshow on Tuesday for its $350 million offering of seven-year senior secured second-lien notes (B3/B-), according to market sources.

The roadshow is scheduled to conclude on June 26, with the notes expected to price thereafter.

Lehman Brothers has the books for the Rule 144A for life notes.

The notes come with four years of call protection, a three-year 35% equity clawback and a 101 change-of-control put provision.

Proceeds will be used the Central Appalachian coal producer's existing term loan, to finance its letter-of-credit facility and for general corporate purposes.

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