July 28, 2009 (FinancialWire) — Arch Coal, Inc. (NYSE: ACI) said it has launched an offering of $500 million of senior unsecured notes due 2016.

The notes will be guaranteed by the company’s subsidiaries that guarantee indebtedness under the company’s existing senior secured credit facility.

Arch plans to use the net proceeds of the offering to finance a portion of the $761.0 million purchase price for its acquisition of the Jacobs Ranch mining complex in Wyoming. The acquisition is scheduled to close in the third quarter of 2009.

If the acquisition is not completed, the company plans to use the net proceeds from this offering for general corporate purposes, which may include the financing of future acquisitions, including lease-by-applications, or strategic combinations, capital expenditures, additions to working capital, repurchases, repayment or refinancing of debt or stock repurchases.

St. Louis-based Arch Coal is a coal producer, which posted revenues of $3.0 billion in 2008. The company’s core business is providing U.S. power generators coal for electric generation.

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