Conuma Coal starts two-day roadshow for $200 million five-year secured notes offering

By Paul A. Harris

Portland, Ore., April 16 – Conuma Coal Resources Ltd. is marketing a $200 million offering of five-year senior secured notes on a roadshow that started on Monday, according to a syndicate source.

The roadshow continues into Tuesday, and the Rule 144A and Regulation S for life offering is set to price later that day.

Goldman Sachs & Co. is the left bookrunner. Credit Suisse Securities (USA) LLC, Jefferies LLC and BMO Securities are the joint bookrunners.

KeyBanc Capital Markets, UBS Investment Bank and ABN Amro are the co-managers.

The notes become callable after two years at par plus 50% of the coupon.

The Vancouver, B.C.-based stand-alone metallurgical coal producer plans to use the proceeds, together with approximately $48 million of cash on hand, to repay certain existing debt, as well as to pay a $171 million special dividend to shareholders, and to fund the Willow Creek reserve account excess liquidity offer.

If the company determines that it has certain amounts of excess cash liquidity, under certain circumstances it will be required to make an offer to purchase the notes with that excess liquidity at 103% plus accrued interest.

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