Published on 12/12/2013 in the Prospect News High Yield Daily.
New Issue: Arch Coal prices upsized $350 million 8% five-year notes at par
By Paul A. Harris
Portland, Ore., Dec. 12 - Arch Coal, Inc. priced an upsized $350 million of five-year senior second-lien notes (B3/CCC+/) at par to yield 8% on Thursday, according to a syndicate source.
The deal was upsized from $300 million.
The yield printed 12.5 basis points beneath the tight end of yield talk set in the 8¼% area.
BofA Merrill Lynch is the left-lead bookrunner. PNC Capital Markets LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
The St. Louis-based coal producer plans to use the proceeds, together with proceeds of a term loan B and cash on hand, to take out its outstanding 8¾% senior notes due 2016.
| Issuer: | Arch Coal, Inc.
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Jan. 15, 2019
|
| Securities: | Senior second-lien notes
|
| Bookrunners: | BofA Merrill Lynch, PNC Capital Markets LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC
|
| Senior co-managers: | RBS Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., Santander Investment Securities Inc.
|
| Co-managers: | Natixis Securities Americas LLC, BBVA Securities Inc., RBC Capital Markets LLC, ING Financial Markets LLC, BB&T Capital Markets, Fifth Third Securities Inc., Regions Securities LLC, Mizuho Securities USA Inc.
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 647 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2016, then callable at 104, 102, par on and after Jan. 15, 2018
|
| Trade date: | Dec. 12
|
| Settlement date: | Dec. 17
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% area
|
| Marketing: | Quick to market
|
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