Massey Energy talks $725 million eight-year notes at 7%-7¼%, pricing Friday

By Paul A. Harris

St. Louis, Dec. 8 - Massey Energy Co. is talking its $725 million offering of eight-year senior notes at a yield of 7% to 7¼%, according to a syndicate source.

Pricing is expected mid-morning on Friday.

UBS Investment Bank has the books for the Rule 144A with registration rights notes. Bear Stearns & Co. and PNC are co-managers.

The notes will come with four years of call protection.

Proceeds will be used to fund Massey's tender for its $220.1 million of 6.95% senior notes due 2007, to buy back its $132 million of 4¾% convertible senior notes due 2023 and for general corporate purposes.

Moody's Investors Service assigns its B1 rating to the notes. Standard & Poor's assigns the notes a rating of BB-.

Massey Energy, with headquarters in Richmond, Va., and operations in West Virginia, Kentucky and Virginia, is the fourth largest coal company in the United States based on produced coal revenue.

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