Cloud Peak Energy Prepares for IPO

Rio Tinto announced that its wholly-owned subsidiary, Cloud Peak Energy Inc., has filed a new registration statement with the U.S. Securities and Exchange Commission (SEC) in connection with Cloud Peak Energy’s proposed initial public offering (IPO) of its common stock. Cloud Peak Energy, comprised of most of Rio Tinto Energy America’s western U.S. coal assets, is a major producer of coal in the U.S. and in the Powder River Basin, operating two of the five largest coal mines in the region. The joint book-running managers for the offering are Credit Suisse Securities (USA), Morgan Stanley and RBC Capital Markets.

In other news, Rio Tinto has received clearance from the U.S. Federal Trade Commission on the pending sale of its Jacobs Ranch coal mine to Arch Coal, Inc. The parties will move ahead to close the transaction which is expected within the next six weeks. On March 9, 2009, Rio Tinto announced it had reached an agreement to sell Jacobs Ranch to Arch Coal for a total cash consideration of US$761 million.

As featured in Womp 2009 Vol 07 -