International Coal plans to buy back portion of 9% convertible notes

By Jennifer Chiou

New York, Aug. 6 - International Coal Group, Inc. intends to repurchase a portion of its 9% convertible senior notes due 2012 in order to cut the outstanding balance to no more than $20 million, according to a 10-Q filing with the Securities and Exchange Commission.

The planned buyback is in connection with the company's new four-year $125 million asset-based loan facility, which has an early acceleration provision if more than $20 million of the notes remains outstanding as of Jan. 31, 2012.

In an April tender offer for the securities, holders tendered $114.5 million of the notes, reducing the amount outstanding to $25 million from $139.5 million.

International Coal is a Scott Depot, W.Va.-based coal producer.

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