Patriot Coal Corp. (PCX) said it plans to sell about 12 million
shares, or 15% of its current outstanding stock, becoming the
latest company to offer shares as market appetite returns.
Shares fell 4.15% premarket to $8.55; the stock through Monday
was up 43% this year.
Proceeds from the sale will go to pay down debt, a primarily use
of the many billions of dollars raised by companies the past month
amid the stock market's ongoing rebound and still-constrained
credit markets.
If there is sufficient demand, the eastern U.S. coal producer
could sell up to 15% more shares. The industry is dealing with
falling demand and prices as electricity usage declines and steel
output slumps.
Amid the industry weakness, Patriot on Monday slightly cut its
2009 sales outlook to 33.5 million to 35 million tons from 34
million to 36 million tons.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com