Murray Energy restructures planned $150 million notes offering

By Paul A. Harris

St. Louis, Nov. 22 - Murray Energy Corp. revised its $150 million high-yield bond offering on Monday, according to an informed source.

The Pepper Pike, Ohio-based coal company now plans to bring the deal as an add-on to its 10¼% senior secured notes due 2015.

Previously the company had been marketing a new offering of seven-year senior notes.

Murray Energy began a consent solicitation on Monday in order to allow for the add-on.

The $150 million deal, which had been expected to price during the run-up to the Thanksgiving holiday weekend, is now expected to price during the middle part of the post-Thanksgiving week.

Jefferies & Co. is the left bookrunner. Goldman Sachs & Co. is the joint bookrunner.

The privately owned company will use the proceeds for general corporate purposes, including the expansion of production capacity and preparation plant processing capacity at certain mining complexes.

The original $500 million issue priced at 98.889 to yield 10½% on Oct. 22, 2009. A previous $40 million add-on priced at 102.5 to yield 9.646% on April 16, 2010.

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