|Arch Western Resources, Llc Announces $250 Million 6-3/4% Senior Notes Offering|
ST. LOUIS (October 18, 2004) - Arch Western Resources, LLC announced today its intention to issue $250 million of 6¾% senior notes, due in 2013, pursuant to Rule 144A under the Securities Act of 1933, as amended. The senior notes will be issued through the company's wholly-owned subsidiary, Arch Western Finance, LLC and will form a single series with Arch Western Finance's existing 6¾% senior notes due in 2013, except that the new notes will be subject to certain transfer restrictions and will not be fully fungible with the existing notes. Arch Western Resources intends to use the net proceeds to repay and retire the outstanding indebtedness under its $100.0 million term loan maturing in 2007. The balance of the net proceeds will be loaned to Arch Western Resource's parent company, Arch Coal, Inc., to be used to repay indebtedness under Arch Coal's revolving credit facility and for general corporate purposes. The company expects to complete the transaction by the end of October 2004.The senior notes will only be offered and sold to qualified institutional buyers in accordance with Rule 144A and Regulation S under the Securities Act. The senior notes have not been registered under the Securities Act or the securities laws of any other jurisdiction. Unless the senior notes are so registered, the notes may be offered and sold only in transactions that are exempt from the registration requirements of the Securities Act or the securities laws of any other jurisdiction.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the senior notes, nor will there be any sale of the senior notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.