Cloud Peak tenders for any and all $300 million of 8¼% notes due 2017

By Jennifer Chiou

New York, Feb. 25 - Cloud Peak Energy Resources LLC announced the start of its cash tender offer for any and all of its $300 million of 8¼% senior notes due 2017.

The Gillette, Wyo.-based coal producer is also soliciting consents to proposed amendments that would shorten to three business days the minimum notice period for optional redemptions and would eliminate substantially all of the restrictive covenants and certain events of default provisions.

The offer will end at 11:59 p.m. ET on March 24.

For each $1,000 principal amount, the company will pay $1,046.50, including a consent payment of $30.00 to those who tender prior to 5 p.m. ET on March 10.

Cloud Peak said it will also pay accrued interest to the settlement date. Initial settlement is slated for March 11.

The withdrawal deadline coincides with the consent payment deadline.

The offer is conditioned on financing of no less than $200 million and execution of a supplemental indenture.

Global Bondholder Services Corp. is the tender agent and information agent (212 430-3774 for banks and brokers or 866 470-4300). Goldman Sachs & Co. is the dealer manager and solicitation agent (212 357-6436 or 800 828-3182).

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