Arch Coal, Inc. (NYSE: ACI - News) today announced that it has commenced an offering of 17,000,000 shares of its common stock pursuant to an automatic shelf registration statement on Form S-3 filed previously with the Securities and Exchange Commission (SEC). The company intends to grant the underwriters of the common stock offering an option for 30 days to purchase up to 2,550,000 additional shares of common stock to cover over-allotments, if any.
The company plans to use the net proceeds of the offering to finance a portion of the $761.0 million purchase price for the previously announced acquisition of the Jacobs Ranch mining complex in Wyoming. The acquisition is expected to close in the third quarter of 2009. If the acquisition is not completed, the company intends to use the net proceeds from this offering for general corporate purposes, which may include the financing of future acquisitions, including lease-by-applications, or strategic combinations, capital expenditures, additions to working capital, repurchases, repayment or refinancing of debt or stock repurchases.
BofA Merrill Lynch, Morgan Stanley & Co. Incorporated, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. are the joint book-runners for the common stock offering.
Arch Coal, Inc. (NYSE: ACI - News) today announced that it has commenced an offering in accordance with Rule 144A under the Securities Act of 1933, as amended, of $500 million in aggregate principal amount of senior unsecured notes due 2016. The notes will be guaranteed by the company's subsidiaries that guarantee indebtedness under the company's existing senior secured credit facility.
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