Arch Coal Prices 48M Share Public Offering of Common Stock at $27/Share

Arch Coal, Inc. ACI today announced its public offering of 48.0 million shares of common stock has priced at a public offering price of $27 per share for gross proceeds of approximately $1.3 billion. Arch also has granted the underwriters a 30-day option to purchase up to an additional 7.2 million shares of its common stock on the same terms and conditions to cover over-allotments, if any. The closing of the offering is subject to customary closing conditions, and the shares are expected to be delivered on June 8, 2011. Arch plans to use the net proceeds of the offering to finance a portion of the $3.4 billion purchase price for the previously announced acquisition of International Coal Group, Inc. ("ICG"). The acquisition is expected to close in June. If the acquisition is not completed, Arch intends 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.