Alpha Natural Resources launches tender offer for 10% notes

By Laura Lutz

Des Moines, April 1 - Alpha Natural Resources, Inc. announced that its subsidiaries Alpha Natural Resources, LLC and Alpha Natural Resources Capital Corp. are beginning a tender offer and consent solicitation for their $175 million outstanding principal amount of 10% senior notes due 2012.

The offer is set to expire at 11:59 p.m. ET on April 28. The consent deadline is 5 p.m. ET on April 14.

For each $1,000 principal amount of notes tendered by the consent deadline, Alpha said it will pay $1,060.50, which includes a $20.00 consent payment, plus accrued interest to the settlement date.

Notes tendered after the consent deadline will receive the same amount, less the consent payment.

The company is seeking consents to amend the note indenture to eliminate substantially all of the restrictive covenants and some events of default and conditions to defeasance.

Funding for the tender will come from concurrent public offerings of common stock and convertible notes, which are expected to raise about $400 million. Settlement of the tender depends on receipt of sufficient funds from the stock and note offerings.

UBS Investment Bank (888 719-4210) and Citi (800 558-3745) are acting as dealer managers. Global Bondholder Services (866 612-1500) is the information agent.

Alpha Natural Resources is a coal producer based in Abingdon, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.