The announcement comes just weeks after the Richmond, Virginia company’s acquisition of Indiana-based Triad Mining for $US75 million, a move that will boost its coal output by at least 3 million tons.
According to the Associated Press, the net proceeds from the sale will be earmarked for financing the acquisition and to repay outstanding debt to the company’s creditors.
The senior notes, backed entirely by the company’s current divisions, will carry an interest rate of 9.375% and will mature June 1, 2012. In addition, of the total equity offering, 1.5 million shares will be sold by the company and 2 million will be sold by particular shareholders at specified redemption values.
It is anticipated the offerings will close May 31.
James River Coal Company operates five coal mines in eastern Kentucky: Bell County Coal in Middlesboro, Bledsoe in Big Laurel, Blue Diamond in Slemp, Leeco in Jeff, and McCoy Elkhorn in Kimper.
