Arch offering stock, debt to fund mine purchase
Written on July 29, 2009
Arch Coal Inc. began offering 17 million shares of common stock and $500 million in senior unsecured notes due in 2016 to finance the purchase of the Jacobs Ranch mining complex in Wyoming, the company said Monday.
Earlier this year, Creve Coeur-based Arch agreed to pay Rio Tinto Plc $761 million for the mine in Wyoming’s Powder River Basin that will allow it to significantly boost output in the nation’s biggest coal-producing region.
Arch initially indicated the purchase would be financed with cash, credit and debt low fee payday loans. But executives on Friday didn’t rule out issuing equity. The acquisition is expected to close by the end of September.
In May, the Federal Trade Commission asked for more information concerning the deal.
In 2004, the FTC opposed Arch’s $364 million acquisition of Powder River Basin coal producer Triton Coal Co. but ultimately gave up its challenge.
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