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Massey Energy prices tender offer, consent bid for its 6 5/8% notes
By Susanna Moon
Chicago, Aug. 19 - Massey Energy Co. said it priced the cash tender offer for any and all of its outstanding $335 million in principal amount of 6 5/8% senior notes due 2010.
Pricing was set as of 2 p.m. ET on Aug. 18 by UBS Securities LLC as dealer manager.
The company said that based on the payment date of Aug. 19, the total payment for each $1,000 principal amount of the notes is $1,026.57, which includes a consent payment of $25.00 per note.
The tender offer yield of 2.333% was based on a fixed spread of 50 basis points over the reference yield of 1.833% on the 3 3/8% U.S. Treasury note due Nov. 15, 2008.
As of the consent deadline at 5 p.m. ET on Aug. 18, holders of $311.5 million principal amount, or 93% of the outstanding $335 million of the notes, had tendered their notes and delivered the related consents.
Massey said it was soliciting consents to amend the indenture governing the 6 5/8% notes.
The company previously said that for each $1,000 principal amount, 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 bps minus accrued interest from May 15 to the payment date.
The amount included a consent fee of $25.00 per note.
The offer will expire at midnight ET on Sept. 2. It began on Aug. 5.
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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