RICHMOND, Va. (AP) â¿¿ James River Coal Co. said Friday that it expects to reap about $393.8 million in net proceeds from recently announced stock and notes offerings. In addition, the company priced a separate offering of $275 million in senior notes. The company plans to use the proceeds from the offerings to help cover the costs of its acquisition of International Resource Partners LP and to buy back 9.375 percent senior notes due next year. James River said underwriters of an offering of $200 million in 3.125 percent convertible senior notes due 2018 have agreed to buy an additional $30 million in notes. As a result, the company expects total net proceeds from that offering will be about $223.1 million. James River said underwriters of an offering of 6.7 million shares also elected to exercise their stock purchase option, buying an additional 997,500 shares. That brings the stock offering to about 7.6 million shares, which resulted in net proceeds of about $170.7 million, James River said. The company's latest offering is for 7.875 percent senior notes due 2019. James River expects the senior notes will become general unsecured obligations of the company and will be guaranteed by its subsidiaries. The company said it will redeem the notes, however, if it fails to acquire International Resource Partners LP by June 1. James River mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers. Shares rose 17 cents to $24.14 in afternoon trading.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
Rep. Maxine Waters Calls for Moratorium on Facebook's Libra Currency
U.S. lawmakers voiced concerns about Facebook'c cryptocurrency initiative, dubbed Libra.
July 4th Sale: Join Jim Cramer's Club for Investors and Save
Get 57% off on your membership to Jim's Action Alerts PLUS club for investors.