International Coal Group, Inc. Closes Offering of 9.125% Senior Secured Second-Priority Notes Due 2018 and Announces Early Acceptance in Tender Offer for 10.25% Senior Notes Due 2014

SCOTT DEPOT, W.Va., March 22 /PRNewswire-FirstCall/ -- International Coal Group, Inc. (NYSE: ICO) ("ICG" or the "Company") announced today that it has closed its previously announced underwritten public offering (the "Senior Notes Offering") of $200.0 million aggregate principal amount of its 9.125% Senior Secured Second-Priority Notes due 2018 (the "Senior Notes").  The Company also announced today that it has accepted for purchase approximately $169.0 million aggregate principal amount of its 10.25% Senior Notes due 2014 (the "Existing Senior Notes") representing all that were validly tendered and not validly withdrawn at or prior to 5:00 p.m., New York City time, on March 19, 2010 pursuant to the Company's previously announced cash tender offer and consent solicitation (the "Senior Notes Tender Offer") for any and all of its outstanding Existing Senior Notes.

The Company used approximately $184.6 million of the net proceeds from the Senior Notes Offering to fund the purchase of the Existing Senior Notes and the related consents.  The Company expects to use the remaining net proceeds from the Senior Notes Offering, together with cash on hand, if necessary, to fund the purchase price of any additional Existing Senior Notes that are validly tendered pursuant to the Senior Notes Tender Offer.  Any excess proceeds from the Senior Notes Offering will be used for general corporate purposes.  

The Company received sufficient consents to approve the proposed amendments to the indenture for the Existing Senior Notes that eliminate substantially all of the restrictive covenants and eliminate or modify certain events of default.  The Company and the trustee for the Existing Senior Notes have entered into a supplemental indenture implementing these amendments.  

The Senior Notes Tender Offer remains open and expires at midnight, New York City time, on April 2, 2010, unless extended or earlier terminated (such date and time, the "Expiration Time").  Holders who validly tender their Existing Senior Notes will be eligible to receive the tender offer consideration of $1,042.50 per $1,000 principal amount of Existing Senior Notes.  

The Company also announced today that, in connection with its recently completed public offering of common stock (the "Common Stock Offering"), the underwriters partially exercised their over-allotment option and purchased an additional 2,073,000 shares of common stock from the Company resulting in additional net proceeds to the Company of approximately $8.8 million.  The sale of such additional shares of common stock closed on March 19, 2010.  The underwriters continue to have an option to purchase up to an additional 1,282,704 shares of common stock from the Company at the Common Stock Offering price of $4.47 per share, less underwriting discounts and commissions, by April 9, 2010, solely to cover over-allotments, if any.  

This press release is for informational purposes only and is not an offer to buy, the solicitation of an offer to sell or a solicitation of acceptance of an offer to purchase with respect to any securities of the Company.  The Senior Notes Tender Offer is being made pursuant to the Senior Notes Tender Offer documents, including the Offer to Purchase, which the Company distributed to holders of Existing Senior Notes on March 8, 2010.  The Senior Notes Tender Offer is not being made to holders of Existing Senior Notes in any jurisdiction in which such offer, sale, solicitation or the making or acceptance thereof 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 Senior Notes 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.