Massey greenshoe exercised, lifts 3.25% convertibles to $690 million

By Devika Patel

Knoxville, Tenn., Aug. 12 - Underwriters for Massey Energy Co.'s 3.25% seven-year convertible senior notes exercised their over-allotment option in full for $90 million more of the convertibles, increasing the size of the issue to $690 million, the company said in an 8-K filed Tuesday with the Securities and Exchange Commission.

As previously reported, the company sold the notes at par of $1,000 on Aug. 6 via joint bookrunners UBS Investment Bank and J.P. Morgan Securities Inc.

The notes have a conversion premium of 42.5% and a conversion price of $87.64, which equals a conversion ratio of 11.4106.

The convertibles will be non-callable and may not be put; and there is dividend and takeover protection.

Proceeds will be used to fund the repurchase of Massey's 6.625% senior notes due 2010 and for general corporate purposes, including working capital or acquisitions.

Massey is a Richmond, Va.-based coal producer.

© 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.