CLD Exchange Offer

What say you? I’m not selling. Substantial gains in non-qualified and qualified accounts. Most of these exchanges have been no brainers for me. There have been a ton this year. This one has me a little befuddled.


Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp. has offered to exchange up to 400 Million USD aggregate principal amount of its notes, including the 6.375% Senior Notes due 2024, for new 12.00% Senior Secured Notes due 2021. Terms of the offer are as follows (subject to proration): Option 1 - Take no action Option 2 - Tender notes for exchange: 632 P.A. New Notes + 40 USD Early Tender Premium + Accrued Interest per 1,000 Principal Amount tendered Please Note: The Early Tender Premium will only be payable to holders who validly tender their notes prior to the Early Tender Deadline, unless extended. Minimum Tender Requirement: 2,000 principal amount and in multiples of 1,000 thereafter Proration: Notes tendered will be accepted according to levels of priority. The priority level for this issue is 2 out of 2. If the principal amount of notes that are unaccepted and returned to a holder as a result of proration would result in less than the minimum authorized denomination, all of such validly tendered notes will either be accepted or rejected. Note: The New Note will be issued in minimum denominations of 2,000 principal amount and in multiples of 1,000 thereafter Guaranteed Delivery: No Last day to purchase and be eligible to tender: 2016-09-22 The Early Tender Deadline to tender notes to the offer will be 2016-09-27 @ 13:00 (America/New York). The Final Deadline to tender notes to the offer will be 2016-10-12 @ 13:00 (America/New_York). In the absence of an election, no action will be taken.