Alpha Natural accepts tenders for $499.71 million Massey 6 7/8% notes

By Jennifer Chiou

New York, June 1 - Alpha Natural Resources, Inc. announced the close of its cash tender offer for any and all of Massey Energy Co.'s 6 7/8% senior notes due 2013 in connection with Alpha's acquisition of Massey and its subsidiaries. Alpha accepted tenders for $499,713,000 of the notes.

The offer ended at 8 a.m. ET on June 1. It began on May 10.

Following the offer, $260,287,000 of the notes remains outstanding, and the company will redeem these notes in July.

The company paid $1,020 per $1,000 principal amount of notes, which included a $30.00 early payment for those who tendered prior to 5 p.m. ET on May 17. Participating holders also received accrued interest to the settlement date.

The tender offer was conditioned upon, among other things, the closing of the proposed acquisition as well as an offering of notes with enough proceeds to fund the offer. Alpha closed on its issues of $800 million of 6% senior notes due 2019 and $700 million of 6¼% senior notes due 2021 on Wednesday for estimated net proceeds of $1.47 billion.

D.F. King & Co. was the depositary and information agent (800 758-5378). The dealer manager was Morgan Stanley & Co. Inc. (800 624-1808 or call collect 212 761-1057).

Abingdon, Va.-based Alpha Natural Resources and Richmond, Va.-based Massey are coal companies.

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