RPT-IPO VIEW-Rio Tinto's U.S. coal unit could face tepid demand
(Repeats story filed Nov. 13, with no change to headline or text)
*Rio Tinto to get about $520 mln from Cloud Peak IPO
*Sales at coal producer Cloud Peak rise, but demand wobbly
*Cloud Peak valuation is high compared to peers
By Phil Wahba and Clare Baldwin
NEW YORK, Nov 13 (Reuters) - Anglo-Australian miner Rio Tinto Plc (RIO.L: Quote, Profile, Research)(RIO.AX: Quote, Profile, Research) is hoping to raise $520 million by spinning off its U.S. coal business, but analysts cautioned that demand for the offering could be tepid.
The IPO is priced at a premium compared with competitors.
And Cloud Peak plans to issue $600 million in notes at the same time as the IPO, which will bring its total debt load to $760 million.
On top of that, global demand for coal has plummeted and the outlook is cloudy. Continued...
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