Alpha Natural Resources credit facility expected at Libor plus 250 bps

By Sara Rosenberg

New York, May 16 - Alpha Natural Resources Inc. now expects that its $1.6 billion senior secured credit facility due June 30, 2016 will carry initial priced of Libor plus 250 basis points, according to a 424B5 filed with the Securities and Exchange Commission on Monday.

Previously, the company had outlined expected pricing at Libor plus 275 bps.

The facility consists of a $1 billion revolver and a $600 million term loan A.

The revolver will have an undrawn fee of 50 bps.

Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are the joint lead arrangers and bookrunners on the deal, with Citi the administrative agent.

There is an up to $2 billion accordion feature, subject to certain conditions.

Proceeds, along with $1.5 billion of senior notes, will be used to help fund the acquisition of Massey Energy Co. for 1.025 shares of Alpha common stock and $10 in cash for each share of Massey common stock and to refinance existing debt at both companies.

Abingdon, Va.-based Alpha Natural Resources and Richmond, Va.-based Massey are coal companies.

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