Vectren Fuels Pending Acquisition

6 Months Ended

Jun. 30, 2014

Vectren Fuels Pending Acquisition [Abstract]

Vectren Fuels Pending Acquisition

(10)  Vectren Fuels Pending Acquisition

On July 1, 2014 Sunrise Coal, LLC entered into an agreement to purchase Vectren Fuels, Inc. (a wholly-owned coal mining subsidiary of Vectren Corporation (NYSE:VVC)).

Vectren Fuels, headquartered in Evansville, Indiana, owns three underground coal mines in southwestern Indiana, including the Oaktown 1 and Oaktown 2 mines in Oaktown, Indiana, and the Prosperity Mine located in Petersburg, Indiana.

The two underground mines in Oaktown, Indiana are seven miles south of our Carlisle underground mine.The purchase price is $296 million plus additional working capital adjustments, not to exceed a total of $325 million. Sunrise is working with its group of banks headed by PNC Bank to secure the necessary financing. We have been advised by PNC that commitments from the various banks in the syndication exceed the amount necessary to fund the acquisition. Closing is expected to occur around September 1, 2014.