ST. LOUIS, July 27 /PRNewswire-FirstCall/ -- Arch Coal, Inc. (NYSE: ACI) today
announced that it has successfully priced its public offering of common stock. The
offering was made pursuant to an automatically effective shelf registration
statement on Form S-3 and prospectus previously filed with the Securities and
Exchange Commission (SEC).
The company announced that it has agreed to sell 17,000,000 shares of
its common stock at a public offering price of $17.50 per share. The company has also granted the underwriters a 30-day option to
purchase up to an additional 2,550,000 shares of its common stock on the same
terms and conditions, solely to cover over-allotments, if any. The closing of
the offering is subject to customary closing conditions, and the shares are
expected to be delivered on July 31, 2009.
The company plans to use the net proceeds of the offering to finance a
portion of the $761.0 million purchase price for
the previously announced acquisition of the Jacobs Ranch mining complex in Wyoming. The acquisition is expected to close in the
third quarter of 2009. If the acquisition is not completed, the company
intends to use the net proceeds from this offering for general corporate purposes,
which may include the financing of future acquisitions, including
lease-by-applications, or strategic combinations, capital expenditures, additions to working
capital, repurchases, repayment or refinancing of debt or stock repurchases.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be any sale of these
securities in any state or jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction.
BofA Merrill Lynch, Morgan Stanley & Co. Incorporated, Citigroup Global
Markets Inc. and J.P. Morgan Securities Inc. are the joint book-runners for the
common stock offering.
The company has filed a registration statement (including a prospectus)
with the SEC for the offering to which this communication relates. Any offer
of the shares referred to in this communication will be made only by means of a
prospectus, including an applicable prospectus supplement, forming part of that
registration statement. Before you invest, you should read that prospectus and
the applicable prospectus supplement and other documents the company has filed
or will file with the SEC for more complete information about the company and
this offering. You may get these documents for free by visiting EDGAR on the SEC
website at www.sec.gov.
The prospectus supplement and the accompanying prospectus relating to
the offering may be obtained from Merrill Lynch, Pierce, Fenner & Smith
Incorporated, 4 World Financial Center, New York, New
York 10080, Attn: Prospectus Department, Morgan Stanley & Co. Incorporated,
Prospectus Department, 180 Varick Street 2/F, New York, New
York 10014 or by telephone at (866) 718-1649, Citigroup Global Markets
Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220, by e-mail to [email protected] or by calling (800) 831-9146
and J.P. Morgan Securities Inc., National Statement Processing, Prospectus
Library, 4 Chase Metrotech Center, CS Level, Brooklyn, New
York 11245 or by telephone at (718) 242-8002.
St. Louis-based Arch Coal is one of the
nation’s largest coal producers, with revenues of $3.0
billion in 2008. The company’s core business is providing U.S. power
generators with cleaner-burning, low-sulfur coal for electric generation.
Through its subsidiary operations, Arch provides the fuel for approximately 6
percent of the electricity generated in the United
States.
Forward-Looking Statements: This press release contains
“forward-looking statements” – that is, statements related to future, not past,
events. In this context, forward-looking statements often address our expected
future business and financial performance, and often contain words such as
“expects,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” or “will.” Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. For us, particular uncertainties
arise from changes in the demand for our coal by the domestic electric generation
industry; from legislation and regulations relating to the Clean Air Act and other
environmental initiatives; from operational, geological, permit, labor and
weather-related factors; from fluctuations in the amount of cash we generate from
operations; from future integration of acquired businesses; and from numerous
other matters of national, regional and global scale, including those of a
political, economic, business, competitive or regulatory nature. These uncertainties
may cause our actual future results to be materially different than those
expressed in our forward-looking statements. We do not undertake to update our
forward-looking statements, whether as a result of new information, future events or
otherwise, except as may be required by law. For a description of some of the
risks and uncertainties that may affect our future results, you should see the
risk factors contained in the prospectus and prospectus supplement related to the
offering or otherwise described from time to time in the reports we file with the
Securities and Exchange Commission.
SOURCE Arch Coal, Inc.