International Coal Group, Inc. Announces Concurrent Offerings Of Common Stock, Convertible Notes And Senior Secured Second-Priority Notes

SCOTT DEPOT, W.Va., March 8 /PRNewswire-FirstCall/ -- International Coal Group, Inc. (NYSE: ICO) ("ICG" or the "Company") announced today that it has commenced public offerings (the "Offerings") of (i) up to 21.2 million shares of its common stock, par value $0.01 per share (the "Common Stock"); (ii) $75.0 million aggregate principal amount of its Convertible Senior Notes due 2017 (the "Convertible Notes"); and (iii) $200.0 million aggregate principal amount of its Senior Secured Second-Priority Notes due 2018 (the "Senior Notes") pursuant to the Company's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC").  The Company expects to grant the underwriters a 30-day option to purchase (i) up to an additional 3.18 million shares of Common Stock in the Common Stock offering and (ii) up to an additional $11.25 million aggregate principal amount of Convertible Notes in the Convertible Notes offering from the Company, in each case, solely to cover over-allotments, if any.  None of the Offerings is contingent upon the completion of the other offerings.

The Company intends to use the net proceeds from the Common Stock and Convertible Notes offerings, together with cash on hand, if necessary, to finance the cash tender offer announced today to repurchase up to $139.5 million aggregate principal amount of its 9.00% Convertible Senior Notes due 2012 and intends to use the net proceeds from the Senior Notes offering, together with cash on hand, if necessary, to finance the cash tender offer and consent solicitation announced today to repurchase up to $175.0 million aggregate principal amount of its 10.25% Senior Notes due 2014 (the "Existing Senior Notes").  Any excess proceeds from the Offerings will be used for general corporate purposes.

UBS Securities LLC and Morgan Stanley & Co. Incorporated are serving as Joint Book-Running Managers for each of the Offerings.  The Common Stock, Convertible Notes and Senior Notes will each be issued pursuant to an effective shelf registration statement that was previously filed with the SEC and was declared effective on January 15, 2010.  Copies of the preliminary prospectus supplements and related base prospectus for the Offerings have been filed with the SEC and are available on the SEC's website, www.sec.gov.  Alternatively, the underwriters will arrange to send you the preliminary prospectus supplements and related base prospectus if you request them by contacting:

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.  The Offerings may be made only be means of prospectus supplements and the related base prospectus.  

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, the tender offers and consent solicitation.  The Offerings are subject to market conditions, and there can be no assurance as to whether or when the Offerings may be completed, or as to the actual size or terms of the Offerings nor that either tender offer will be completed or that sufficient consents will be received to approve the proposed amendments to the indenture governing the Existing Senior Notes.

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.