Patriot Coal CORP

29 May 2008capital raising announcement● NeutralMajor

This sets out the terms of the $200 million convertible notes: maturing May 31, 2013, 3.25% interest, and an initial conversion price of about $135.34 per share (7.3889 shares per $1,000). If the Magnum merger agreement is terminated, Patriot may redeem the notes on or before December 31, 2008, and under the credit facility as currently in effect it must redeem them by then (or a later date agreed by the majority lenders). The notes are senior unsecured, but structurally subordinated to subsidiary liabilities and effectively subordinated to secured debt. The filing also notes that an affiliate of Lehman Brothers, Patriot's adviser, owns about 5.4% of Patriot and is a lender to Magnum.

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28 May 2008capital raising announcement● NeutralMajor

Patriot closed the private sale of $200 million of 3.25% convertible senior notes due 2013, with the over-allotment option fully exercised (up from the $175 million first announced). Net proceeds were about $192.8 million, which Patriot intends to use to reduce the debt to be assumed in the Magnum acquisition and for general corporate purposes, or to redeem the notes if the acquisition does not close. This resolves the open question on the notes' pricing and size.

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23 May 2008capital raising announcement● NeutralMajor

Patriot signed the purchase agreement with Citigroup Global Markets and Lehman Brothers (as representatives of the initial purchasers) to sell $175 million of 3.25% convertible senior notes due 2013, with a 30-day option for $25 million more. It also signed a second amendment (May 19, 2008) to its Bank of America credit agreement to allow the permanent and convertible debt to be incurred before the Magnum merger closes and to adjust covenants and definitions. This continues the convertible note financing announced May 20-21.

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