James River Coal closes $172.5M note offering

AP News
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Posted: Nov 20, 2009 3:14 PM

James River Coal Co. on Friday said it closed its $172.5 million convertible senior note offering.

The company said its 4.5-percent convertible senior notes were sold in a private placement. The notes will pay interest semiannually and mature in 2015. The company sold $150 million of notes, along with $22.5 million of notes from the over-allotment option.

Net proceeds, including from the over-allotment option, amount to about $166.8 million. James River said it planned to use $58.5 million of the proceeds to terminate a letter of credit facility and the rest for working capital and general purposes.

Shares of the company fell 72 cents, or 3.5 percent, to $19.60 in afternoon trading.