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Alpha Natural to redeem remaining 10% notes due 2012
By Susanna Moon
Chicago, May 5 - Alpha Natural Resources, LLC plans to redeem the remaining $1.32 million principal amount of 10% senior notes due 2012 co-issued by ANR LLC and Alpha Natural Resources Capital Corp., according to a 10-Q filing with the Securities and Exchange Commission.
The company said it will redeem the bonds for $1.43 million on June 1.
Alpha Natural said on April 14 that it received the necessary consents to amend the $175 million outstanding principal amount of 10% notes.
By the consent deadline of 5 p.m. ET on April 14, holders had delivered consents for $173.68 million, or 99%, of the notes.
Alpha has executed a supplemental indenture incorporating the changes. It expected to accept for payment all validly tendered notes on April 15. The changes to the notes were set to go into effect on the early settlement date.
The offer was slated to expire at 11:59 p.m. ET on April 28.
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 was 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) were dealer managers. Global Bondholder Services (866 612-1500) was the information agent.
Alpha Natural Resources is a coal producer based in Abingdon, Va.
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