| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Alpha Natural Resources Inc. > News item |
Alpha Natural sets Thursday investor call for $1.7 billion bridge loan
By Paul A. Harris and Sara Rosenberg
Portland, Ore., March 1 - Dealers plan an investor call for Alpha Natural Resources' $1.7 billion bridge loan at 11 a.m. ET Thursday, according to an informed source.
Morgan Stanley & Co. and Citigroup are the bookrunners.
The bridge loan, backing an expected issue of high-yield bonds, is part of the financing for Alpha's acquisition of Massey Energy Co.
Late last week the company announced initial pricing on the bridge loan of Libor plus 525 basis points, stepping up by 50 bps after three months and another 50 bps every three months thereafter, according to the filing.
There is 1.5% Libor floor.
The acquisition financing also includes a $1.6 billion five-year senior secured credit facility.
Proceeds from the new debt, along with cash on hand, will be used to fund the cash consideration to Massey stockholders, to refinance $1.4 billion of Massey debt and to refinance existing debt at Alpha, including its term loan A.
Alpha is purchasing Massey for 1.025 shares of Alpha common stock and $10 in cash for each share of Massey common stock.
Pro forma post closing, last-12-months adjusted EBITDA will be $1.17 billion and total debt will be $2.9 billion.
The combined company will initially have a debt-to-adjusted EBITDA ratio of about 2.5 times with the opportunity for rapid deleveraging given the potential cash flow generation of the combined company.
The transaction is expected to close in mid-2011, subject to approval by each company's stockholders and customary regulatory approvals and conditions.
Abingdon, Va.-based Alpha Natural Resources and Richmond, Va.-based Massey are coal companies.
© 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.