NEW YORK (AP) - Patriot Coal plans to sell $175 million worth of
convertible notes to pay down debt related to its pending
acquisition of rival Magnum Coal.
Patriot says it plans to allow buyers the option to purchase an
additional $25 million worth of notes. Details released Tuesday by
Patriot say the notes will be convertible to cash and shares of
Patriot stock. The interest rate hasn't been determined yet.
Patriot says part of the proceeds will go toward general
purposes as well.
St. Louis-based Patriot agreed to acquire Charleston,
W.Va.-based Magnum last month. The $709 million deal is expected to
close this summer, pending approval by Patriot shareholders.
Patriot owns Peabody Energy's former coal operations in West
Virginia and portions of Kentucky.