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Coal Stocks Rise and Utilities Fall during Bad Week for S&P 500 (Continued from Prior Part) Arch Coal gains
After experiencing heightened volatility in the previous week, Arch Coal (ACI) gained a whopping 205% to $3.85 as the deadlock on the debt exchange offer seems to have resolved. In other news, the George Soros Investment Fund declared that it bought a small stake in the company in 2Q15.
Arch Coal (ACI) is offering debt exchange to investors to increase its financial flexibility to avoid bankruptcy. Some senior lenders were opposing the deal, demanding better yields and terms. Bloomberg Businessweek reported last week that the company “is seeking a compromise with lenders opposing a debt-swap deal.”
Peabody Energy gains too
After being under pressure for weeks, Peabody Energy (BTU) gained 57.5% and ended at $1.78 last week. Some reports suggested that the company is looking to offload its Australian assets, which it acquired in a $5.2 billion acquisition of Macarthur Coal in 2011. The company’s Australian operations are burning cash heavily, primarily on account of weak metallurgical coal prices, which are at a six-year low. Offloading these assets will reduce the cash burn as well as reduce the leverage if the company repays debt through proceeds.
Other gainers
Cloud Peak Energy (CLD) gained 9.5% to $3.33, while Westmoreland Coal Company (WLB) gained 3.9% to $12.64. Consol Energy (CNX) continued to lose on subdued natural gas prices. The stock lost 2.5% to $12.61.
While major coal stocks gained, the Market Vectors Coal ETF (KOL) dropped 4.4%, led by Chinese coal stocks. American stocks account for only 30% of the ETF.
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Arch Coal Inc
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PRODUCER |
CODE : ACI |
ISIN : US0393801008 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Arch Coal is a coal producing company based in United states of america. Arch Coal holds various exploration projects in USA. Its main assets in production are WEST ELK, BLACK THUNDER and JACOB'S RANCH in USA and its main asset in development is SPRUCE N° 1 in USA. Arch Coal is listed in Germany and in United States of America. Its market capitalisation is US$ 366 000 as of today (€ 317 981). Its stock quote reached its highest recent level on June 27, 2003 at US$ 99.96, and its lowest recent point on October 04, 2018 at US$ 0.01. Arch Coal has 36 600 000 shares outstanding. |