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Alpha Natural gets tenders for 18.58% of Appalachia 3.25% convertibles
By Susanna Moon
Chicago, Oct. 12 - Alpha Natural Resources, Inc. said investors tendered $122,349,000 in aggregate principal amount, or about 18.58%, of the 3.25% convertible senior notes due 2015 issued by Alpha Appalachia Holdings, Inc. by 5 p.m. ET on Oct. 11, the early expiration date.
The company will pay about $115.8 million in cash to purchase the notes on Oct. 12, according to a press release by Alpha Natural.
As reported, Alpha Natural and Alpha Appalachia (formerly Massey Energy Co.) began a cash tender offer on Sept. 27 for up to $350 million principal amount of the outstanding 3.25% convertibles.
The total purchase price is $940 per $1,000 principal amount of notes tendered by the early tender date, which includes an early tender premium of $20.00 per $1,000 of notes.
Holders may continue to tender notes until 11:59 p.m. ET on Oct. 25.
Those who tender after the early tender deadline, however, will not receive the early tender premium.
If the amount of tendered notes exceeds the offer cap, the notes will be purchased on a prorated basis, as previously noted.
The company also will pay accrued interest up to but excluding the settlement date, which will be Oct. 12 for early tenders or one business day following the offer expiration date for remaining tenders.
The tender offer is conditioned on completion of an offering by Alpha of one or more series of its senior notes with enough proceeds to fund the offer.
Alpha Natural priced $500 million of 9¾% senior notes due April 15, 2018 at 98.959 to yield 10% on Sept. 28, as reported by Prospect News.
Citigroup Global Markets Inc. (800 831-9146) and Barclays (800 438-3242) are the dealer managers for the tender offer. D.F. King (800 967-4617) is the tender agent and information agent.
Alpha Natural Resources is a Bristol, Va.-based producer of coal.
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