Massey Energy $100 million convertible talked at 4.25-43.75% yield, up 60-65%

By Ronda Fears

Nashville, May 21 - Massey Energy Co. launched $100 million of 20-year convertible notes talked to yield 4.25% to 4.75% with a 60% to 65% initial conversion premium via lead manager Citigroup.

The Rule 144A deal is scheduled to price after the close Thursday.

The issue will be non-callable for six years, with puts in years 6, 10 and 15.

There is a contingent conversion trigger of 120%.

Richmond, Va.-based Massey, which bills itself as the fourth largest U.S. coal company, said it plans to use proceeds to permanently repay its revolving credit facility.

Massey shares closed up 48c, or 3.88%, to $12.84.

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