Walter Energy exchanges $35 million 9 7/8% notes due 2020 for stock

By Toni Weeks

San Luis Obispo, Calif., April 25 - Walter Energy, Inc. announced that it exchanged $35 million principal amount of 9 7/8% senior notes due 2020 held by a noteholder for 3.15 million shares of common stock, according to an 8-K filing with the Securities and Exchange Commission.

The company executed the transaction to reduce debt and interest cost, increase equity and improve the balance sheet, and it may engage in additional exchanges if opportunities arise, the filing noted.

The company did not receive any cash proceeds from exchanging the stock for the notes, which will be retired and canceled.

Birmingham, Ala.-based Walter Energy is a pure-play metallurgical coal producer for the global steel industry.

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