BRISTOL, Tenn., Aug. 10, 2017 /PRNewswire/ -- Contura Energy, Inc. today announced that it has withdrawn the initial public offering of its shares of common stock due to capital market conditions.
The company's principal selling stockholders unanimously determined that proceeding with the offering under current market conditions would undervalue the company. Accordingly, the company has withdrawn its registration statement on file with the U.S. Securities and Exchange Commission (SEC).
"We appreciate the diligent consideration given by our company's principal stockholders during this process," said Kevin Crutchfield, Chief Executive Officer. "Proceeding with an IPO at this time is not the best course for our company or our stockholders. We will continue to analyze all strategic options and opportunities to maximize the potential of our young company."
As previously disclosed, the company amended its debt agreements to permit an aggregate amount of $150.0 million of cash to be used for the July 13, 2017 payment of a $100.7 million extraordinary dividend and dividend equivalent and for the potential repurchase of company common stock at any time no later than December 31, 2017. The company's board of directors is considering creating a common stock buyback program with the remaining $49.3 million. The board's analysis will take into consideration any legal or contractual limitations, actual and anticipated future earnings, cash flow, debt service and capital requirements, tax considerations, the trading price of the company's common stock, and other factors that the board may deem relevant.
This news release shall not constitute an offer to sell, the solicitation of an offer to buy, or an offer to purchase, nor shall there be any sale or purchase of securities in any state or jurisdiction in which such offer, solicitation, sale or purchase would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
ABOUT CONTURA ENERGY
Contura Energy is a private, Tennessee-based, diversified coal supplier with affiliate mining operations across multiple major coal basins in Pennsylvania, Virginia, West Virginia and Wyoming. With customers across the globe, high-quality reserves and significant port capacity, Contura Energy reliably supplies both metallurgical coal to produce steel and thermal coal to generate power.
This news release includes forward-looking statements, including but not limited to statements regarding potential repurchases of common stock. These forward-looking statements are based on Contura's expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Contura's control. Forward-looking statements in this news release or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Contura to predict these events or how they may affect Contura. Contura has no duty to, and does not intend to, update or revise the forward-looking statements in this news release or elsewhere after the date this release is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this news release may not occur.
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SOURCE Contura Energy, Inc.