Massey gives conversion notice for 3.25% convertibles due to merger

By Jennifer Chiou

New York, May 2 - Massey Energy Co. said it delivered a notice of conversion to holders of its 3.25% convertible senior notes due 2015 as a result of Alpha Natural Resources Inc.'s plan of merger and acquisition of Massey.

The Richmond, Va.-based coal company said that the securities are convertible at the option of holders into an amount up to 100% of the principal amount in cash plus, if any, at the election of Massey during the convertibility period prior to the actual effective date of the merger an excess amount or, at the election of Alpha Natural, any excess amount on and after the effective date in cash, stock or a combination.

The notes are currently convertible into 11.4542 shares per $1,000 principal amount.

Massey shares (NYSE: MEE) closed at $67.71 apiece on Monday.

Noteholders will be able to convert their notes during a period that begins 30 calendar days prior to the date originally announced as the anticipated effective date of the merger. The merger is anticipated to occur on June 1. The conversion period, therefore, begins on May 2 and will end no sooner than July 2 and no later than Aug. 3, according to a news release.

Holders who surrender their convertibles during the make-whole conversion period, which beings on the effective date of the merger and ends on the earlier of 41 business days after or the fundamental change repurchase date, will be eligible to receive the make-whole payment.

Wilmington Trust Co. is the conversion agent (attn: Jane Schweiger).

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