James River Coal Shares Rise to Highest Level in Two Months

Bloomberg reported that shares of James River Coal Co. (NASDAQ:JRCC) rose to a two-month high, gaining 16 percent to reach $2.58, following the company’s decision to exchange around “$243.4 million of convertible bonds for $123.3 million of new notes due in 2018.”

As quoted in the market news:

The company will exchange $90 million of 4.5 percent notes due 2015 and $153.4 million 3.125 percent notes due 2018 for new 10 percent senior convertible notes, the Richmond, Virginia-based company said today in a statement.

‘The company reduced its 2015 maturities and, given the challenging coal markets, that’s quite a plus,’ Lucas Pipes, a New York-based analyst at Brean Capital LLC, said by phone. ‘The swap essentially gives them additional time to weather out this current weakness.’

Click here to read the full Bloomberg report.