RICHMOND, Va. (AP) ¿ James River Coal Co. said Wednesday that it plans to offer $125 million in convertible senior notes with interest rates to be set by negotiations with initial purchasers. Another $18.75 million in notes would be issued to cover overallotments. James River said it planned to use $57.3 million of the proceeds to terminate a letter of credit facility and the rest for working capital and general purposes. The company said the notes would pay interest semiannually, mature in 2015 and be marketed to qualified institutional buyers. They could be converted to cash, common stock or a combination, at the company's option. Shares of James River rose 24 cents, to $21.92 in regular trading, then sank $1.19, or 5.4 percent, in extended trading after news of the offer, which could dilute the value of current shares.
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