International Coal Group, Inc. Prices Upsized Concurrent Offerings of Common Stock and Convertible Notes
SCOTT DEPOT, W. Va., March 10 /PRNewswire-FirstCall/ -- International Coal Group, Inc. (NYSE: ICO) ("ICG" or the "Company") announced today that it has priced underwritten public offerings (the "Offerings") of (i) 22,371,365 shares of its common stock, par value $0.01 per share (the "Common Stock") at a public offering price of $4.47 per share and (ii) $100.0 million aggregate principal amount of its 4.00% Convertible Senior Notes due 2017 (the "Convertible Notes"). The Company had previously announced its intent to issue (i) 21,200,000 shares of Common Stock and (ii) $75.0 million aggregate principal amount of Convertible Notes. UBS Securities LLC and Morgan Stanley & Co. Incorporated are serving as Joint Book-Running Managers for each of the Offerings. The underwriters will also have the option to purchase (i) up to an additional 3,355,704 shares of Common Stock and (ii) up to an additional $15.0 million aggregate principal amount of Convertible Notes from the Company, in each case, at the applicable public offering price, less underwriting discounts and commissions, within 30 days, solely to cover over-allotments, if any. The Convertible Notes will be convertible under certain circumstances and during certain periods at an initial conversion rate of 172.0874 shares of Common Stock per $1,000 principal amount of Convertible Notes, representing an initial conversion price of approximately $5.81 per share of Common Stock, which is equal to an approximately 30% conversion premium above the public offering price of the Common Stock. The Convertible Notes will mature on April 1, 2017. The Offerings are expected to close on March 16, 2010. The Company intends to use the net proceeds from the Offerings, together with cash on hand, if necessary, to finance the previously announced cash tender offer to repurchase up to $139.5 million aggregate principal amount of its 9.00% Convertible Senior Notes due 2012. Any excess proceeds from the Offerings will be used for general corporate purposes.
The Common Stock and Convertible Notes will each be issued pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the "SEC") and was declared effective on January 15, 2010. Copies of the final prospectus supplements and related base prospectus for the Offerings, when available, will be filed with the SEC and will be available on the SEC's website, www.sec.gov. Alternatively, the underwriters will arrange to send you the final prospectus supplements and related base prospectus, when available, if you request them by contacting:
UBS Securities LLC Attn: Prospectus Department 299 Park Avenue New York, New York 10171 Telephone: 888-827-7275 |
Morgan Stanley & Co. Incorporated Attn: Prospectus Department 180 Varick Street, 2nd Floor New York, New York 10014 Telephone: 866-718-1649 E-mail: [email protected] |
|
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of the Company, nor will there be any sale of such securities in any jurisdiction in which such offer, sale or solicitation would be unlawful.
This press release contains "forward-looking statements" within the meaning of federal securities law. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control. Such risks and uncertainties include the completion of the Offerings and the tender offer.
General Information
ICG is a leading producer of coal in Northern and Central Appalachia and the Illinois Basin. The Company has 13 active mining complexes, of which 12 are located in Northern and Central Appalachia and one in Central Illinois. ICG's mining operations and reserves are strategically located to serve utility, metallurgical and industrial customers domestically and internationally.
SOURCE International Coal Group, Inc.
Share this article