New Issue Summary | October 5, 2006 | ||
Issuer: | Peabody Energy Corporation |
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Guarantors: | Subject to certain exceptions, our obligations
under the notes will be jointly and severally
guaranteed on a senior unsecured basis by all
our existing domestic subsidiaries. In
addition, any domestic subsidiary that
executes a guarantee under our senior
unsecured credit facility will be required to
guarantee the notes. |
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Securities: | Senior Notes due 2016 and Senior Notes due 2026 |
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Gross Proceeds of 2 Tranches: | $896,882,500 |
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Principal Amounts of Each Tranche: | Senior Notes due 2016: $650,000,000 Senior Notes due 2026: $250,000,000 |
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Gross Proceeds of Each Tranche: | Senior Notes due 2016: $650,000,000 Senior Notes due 2026: $246,882,500 |
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Coupon: | Senior Notes due 2016: 7.375% Senior Notes due 2026: 7.875% |
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Price per Bond: | Senior Notes due 2016: 100% Senior Notes due 2026: 98.753% |
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Yield: | Senior Notes due 2016: 7.375% Senior Notes due 2026: 8.000% |
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Maturity: | Senior Notes due 2016: November 1, 2016 Senior Notes due 2026: November 1, 2026 |
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Interest: | Semi-Annual |
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Interest Payments: | May 1 and November 1, commencing May 1, 2007 |
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Use of Proceeds: | We intend to use the net proceeds of the
offering, together with the proceeds of other
sources of financing, to consummate the
acquisition of Excel Coal Limited, with any
remaining proceeds being used for general
corporate purposes. The shareholders of Excel
have approved the acquisition. The
acquisition remains subject to certain other
closing conditions, including approval by an
Australian court, the absence of a material
adverse change with respect to Excel and other
conditions. |
New Issue Summary | October 5, 2006 | ||
Underwriters: | Morgan Stanley/Lehman Brothers (Jt-Bookrunning
Managers); ABN AMRO Incorporated/Banc of
America Securities LLC/BMO Capital Markets/BNP
Paribas/Calyon Securities
(USA)/Citigroup/Credit Suisse/HSBC/PNC Capital
Markets LLC/RBS Greenwich Capital/Wells Fargo
Securities (Co-Managers) |
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Distribution Method: | Registered |
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Trade Date: | October 5, 2006 |
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Settlement Date: | October 12, 2006 (T+4) |
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Optional Redemption: | Makewhole Call at Relevant Treasury Yield plus: 50 basis points (Senior Notes due 2016) 50 basis points (Senior notes due 2026) |
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CUSIP: | Senior Notes due 2016: 704549 AE 4 Senior Notes due 2026: 704549 AF 1 |