Westmoreland Issues $125 Million of Senior Secured Notes Due 2018
Westmoreland Coal Company (NasdaqGM:WLB) and certain of its subsidiaries
('Westmoreland?) announced today the closing of its offering of $125.0
million aggregate principal amount of Senior Secured Notes due 2018 (the
'Notes?) in a private placement. The Notes are additional notes to the
already outstanding $150 million principal amount of existing 10.75%
Senior Secured Notes due 2018.
The proceeds from the offering of the Notes will be used primarily to
finance the acquisition of the Kemmerer Mine. We expect to use $76.5
million as cash consideration for the acquisition and approximately
$24.7 million for reclamation bonding collateral for the Kemmerer Mine.
The remainder will be used to fund the Kemmerer Mine′s initial working
capital, to pay all estimated transaction fees and expenses incurred in
connection with this offering, and for general corporate purposes.
The Notes were sold only to qualified institutional buyers in the United
States in reliance on Rule 144A under the Securities Act of 1933, and
outside the United States to non-U.S. persons in reliance on Regulation
S under the Securities Act. The issuance of the Notes was not registered
under the Securities Act, and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements. This press release shall not constitute an offer to sell,
or the solicitation of an offer to buy, any securities, nor shall there
be any sale of securities mentioned in this press release in any state
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state.
Forward-Looking Information
This press release contains 'forward-looking? statements.
Forward-looking statements reflect current expectations and projections
about future events, and thus involve uncertainty and risk. It is
possible that future events may differ from expectations due to a
variety of risks and other factors such as market conditions. It is not
possible to foresee or identify all such factors. Any forward-looking
statements in this press release are based on certain assumptions and
analyses made in light of Westmoreland′s experience and perception of
historical trends, current conditions, expected future developments, and
other factors it believes are appropriate in the circumstances.
Forward-looking statements are not a guarantee of future performance and
actual results or developments may differ materially from expectations.
Westmoreland does not intend to update any particular forward-looking
statements contained in this press release.
About Westmoreland Coal Company
Westmoreland Coal Company is the oldest independent coal company in the
United States. The Company′s coal operations include coal mining in the
Powder River Basin in Montana and lignite mining operations in Montana,
North Dakota and Texas. Its power operations include ownership of the
two-unit ROVA coal-fired power plant in North Carolina. For more
information, visit www.westmoreland.com.
Westmoreland Coal Company
Kevin Paprzycki, 855-922-6463
