The coal producer said it would use the proceeds to repay its revolving credit facility and retire its term loan facility, to fund future capital expenditures, and for general corporate purposes.
On Wednesday the company said it had lowered its outlook for the company's 2006 financial performance due to a variety of operating issues experienced during the first half of the year.
Chief executive Ben Hatfield said total revenue for 2006 would be $980 million-1.05 billion, down from the $1.02-1.1 billion range previously projected.
The company's first quarter earnings were hit hard by the fatal accident at its Sago mine, with the company attributing $11.7 million in costs to the January 2 disaster that killed 12 miners.
