Westmoreland Announces Proposed Offering of Additional Senior Secured Notes
Westmoreland Coal Company (NasdaqGM:WLB) today announced that it,
together with Westmoreland Partners, its indirect wholly owned
subsidiary, as Co-Issuer, intends to offer $130 million principal amount
of 10.75% Senior Secured Notes due 2018 (the 'Notes?) as additional
notes to the already outstanding $150 million principal amount of
existing 10.75% Senior Secured Notes due 2018, in a private placement.
The terms, timing and structure of any transaction are subject to market
and other conditions. There can be no assurance that any transaction
will ultimately be pursued or that any transaction, if pursued, will be
successful.
The net proceeds from the offering of the Notes are expected to be used,
together with cash on hand, to finance the acquisition of the Kemmerer
Mine. The net proceeds shall be used to pay the cash consideration of
$74.4 million, approximately $32.0 million for reclamation bonding
collateral and the remainder to fund initial Kemmerer working capital
and to pay estimated transaction fees and expenses.
The Notes will be sold only to qualified institutional buyers in the
United States in reliance on Rule 144A under the Securities Act of 1933,
as amended (the 'Securities Act?), and outside the United States to
non-U.S. persons in reliance on Regulation S under the Securities Act.
The proposed issuance of the Notes will not be registered under the
Securities Act, and may not be offered or sold in the United States
absent registration under the Securities Act or an applicable exemption
from the registration requirements of the Securities Act. 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, including whether the offering is completed
on the terms specified or at all, 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