Massey Energy launches tender offer, consent bid for its 6 5/8% notes

By Susanna Moon

Chicago, Aug. 5 - Massey Energy Co. said it began a cash tender offer and consent solicitation for any and all of its outstanding $335 million in principal amount of 6 5/8% senior notes due 2010.

In connection with the offer, Massey said it is soliciting consents to amend the indenture governing the 6 5/8% notes.

For each $1,000 principal amount, the company said it would pay the sum of the present value on the payment date of $1,016.56 plus accrued interest, using the bid-side yield on the 3 3/8% U.S. Treasury note due Nov. 15, 2008 plus 50 basis points minus accrued interest from May 15 to the payment date.

UBS Securities LLC, the dealer manager, will price the notes at 2 p.m. ET on Aug. 18.

The total payout includes a consent fee of $25.00 per $1,000 principal amount for holders who tender notes by 5 p.m. ET on Aug. 18, the consent date.

The offer will expire at midnight ET on Sept. 2.

The offer is conditioned upon the receipt of at least $600 million of gross proceeds from convertible notes and stock offerings.

UBS Investment Bank (888 722-9555, ext. 4210) is dealer manager and solicitation agent.

Global Bondholder Services (866 470-4500) is depositary and information agent.

Massey Energy is a coal producer based in Richmond, Va.

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