CHARLESTON, W.Va. (AP) - Patriot Coal has set the conversion
price of $175 million worth of convertible notes it's selling to
pay down debt related to its pending acquisition of rival Magnum
Patriot announced Wednesday evening that the notes would be
convertible to approximately 7.4 shares of its common stock per
$1,000 worth of notes. Patriot says that equals an initial
conversion price of approximately $135.34 per share - a 40 percent
premium over Wednesday's closing price of $96.67.
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.