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From Earlier: Westmoreland Prices Additional Senior Secured Note Offering


Westmoreland Coal Company (Nasdaq: WLB) yeesterday announced that it, together with Westmoreland Partners, its indirect wholly-owned subsidiary, as co-issuer, priced its offering of $125 million principal amount of 10.75% Senior Secured Notes due 2018 at a price equal to 95.4916% of their face value. The Notes will be additional notes to the already outstanding $150 million principal amount of existing 10.75% Senior Secured Notes due 2018. The Notes offering is expected to close on or about January 31, 2012, concurrently with the closing of the previously announced acquisition of the Kemmerer Mine, which closing is subject to certain customary conditions and approvals.

The proceeds from the offering of the Notes will be used primarily to finance the acquisition of the Kemmerer Mine. We expect to use $74.4 million as cash consideration for the acquisition and approximately $27.0 million for reclamation bonding collateral for the Kemmerer Mine. The remainder will be used to fund the Kemmerer Mine's initial working capital, to pay all estimated transaction fees and expenses incurred in connection with this offering, and for general corporate purposes.

Posted-In: News Offerings


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