Foresight Energy LLC, an Illinois coal producer founded by coal operator Chris Cline, and Foresight Energy Finance Corp. said July 23 that they have commenced a cash tender offer and consent solicitation.
This solicitation is in respect to any and all of their outstanding $600m aggregate principal amount of 9.625% Senior Notes due 2017 on the terms and subject to the conditions set forth in the Issuers’ Offer to Purchase and Consent Solicitation Statement, dated July 23, together with the related Consent and Letter of Transmittal dated July 23.
In connection with the tender offer, the Foresight companies (known as the Issuers) are soliciting consents from the holders of the Notes to certain proposed amendments that would eliminate substantially all of the restrictive covenants, certain events of default and related provisions contained in the indenture governing the Notes.
The tender offer will expire at 11:59 p.m., New York City time, on Aug. 19, unless extended or earlier terminated by the Issuers in their sole discretion.
Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are acting as joint dealer managers and solicitation agents and Global Bondholder Services Corp. is acting as the tender agent and information agent for the tender offer and consent solicitation.
Foresight Energy is a leading producer of high-sulfur thermal coal with over three billion tons of coal reserves in the Illinois Basin. It operates four deep mining complexes in Illinois, three of which utilize highly productive longwalls.
