Walter Industries, Inc. (fka WLTGQ)

[Tommy]

$WLT - Walter Energy Prices $450 Million Private Offering of Senior Secured Notes

http://seekingalpha.com/news-article/7637042-walter-energy-prices-450-million-private-offering-of-senior-secured-notes?source=email_portfolio&ifp=0

BIRMINGHAM, AL -- (Marketwired) -- 09/19/13 -- Walter Energy Inc. ("Walter Energy") (NYSE: WLT) (TSX: WLT) today announced that it has increased the size of its previously announced offering of $350 million aggregate principal amount of senior secured notes due 2019 to $450 million with a coupon of 9.500% per annum (the "Notes"). Walter Energy (WLT) will pay interest on the Notes on April 15 and October 15 of each year, beginning on April 15, 2014. The Notes will be guaranteed by each of Walter Energy's current and future wholly-owned domestic restricted subsidiaries that from time to time guarantees any of Walter Energy's indebtedness or any indebtedness of any of Walter Energy's restricted subsidiaries. The Notes and related guarantees will be secured on a first priority basis by substantially all of the property and assets of Walter Energy and the guarantors. The Notes and related guarantees will be offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.

Walter Energy plans to use the net proceeds of the offering (i) to repurchase up to $250 million of its Term Loan A through a Dutch Auction process and (ii) the remainder for general corporate purposes. To the extent the proposed Dutch Auction is not fully subscribed, the unused portion of the $250 million referred to above for use in the Dutch Auction will be used to repay Term Loan A and Term Loan B on a pro rata basis.

This press release does not constitute an offer to sell, or a solicitation of an offer to sell or buy any securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Walter Energy

Walter Energy is a leading, publicly traded "pure-play" metallurgical coal producer for the global steel industry with strategic access to high-growth steel markets in Asia, South America and Europe. The company also produces thermal coal, anthracite, metallurgical coke and coal bed methane gas. Walter Energy employs approximately 4,100 employees with operations in the United States, Canada and United Kingdom.