Vancouver's Western Canadian Coal Corp. (TSX:WTN) has completed a $40 million private placement of convertible debentures with a group of investors.
Proceeds from the placement will be used for working capital at the company's Wolverine coal mine and to pay down the principal for bank debts. About $7.5 million of debt will be paid off, reducing Western's bank debt to $27.5 million.
The debentures issued bear interest at 8.5% per annum payable semi-annually beginning on May 31, 2008, and are convertible into shares at any time prior to maturity at a conversion price of $0.75 per share.
Western Canadian Coal's share price range during the past week: between $0.71 and $1.24; 52-week high: $3.23; 52-week low: $0.47.