Consol Mining launches twice-downsized eight-year notes at 11%

By Paul Deckelman

New York, Oct. 30 – Consol Mining Corp. launched a $300 million offering of senior secured second-lien notes due 2025 at 11%, high-yield syndicate sources said on Monday.

Price talk on the issue was 10¾% to 11% – wider than the 9% area price talk which had circulated in the market toward the end of last week.

The issue was twice downsized, first from the originally planned $350 million to $325 million earlier Monday, and then again later in the session to $300 million.

The deal was first announced on Oct. 23, and had been expected to price at the tail end of last week, but that did not happen and the issue was ultimately floated off to this week.

That Rule 144A and Regulation S transaction is being brought to market via J.P. Morgan Securities LLC.

The notes will come with four years of call protection.

The company – a Pittsburgh-based coal mine operator being spun off from its corporate parent, Consol Energy Inc., an oil and natural gas exploration and production company also based in Pittsburgh – plans to use the new-deal proceeds, together with borrowings under new term loan facilities and a revolving credit facility to be entered into upon its separation from Consol Energy, to fund that spinoff via a payment to Consol Energy under the terms of the coming separation.

A portion of the proceeds will also be used to refinance the existing revolver debt of CNX Coal Resources LP, to fund working capital needs and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.