By Paul A. Harris
St. Louis, Dec. 9 - Massey Energy Co. priced an upsized $760 million issue of 6 7/8% eight-year senior notes (B1/BB-) at 99.243 on Friday to yield 7%, according to an informed source.
The yield came at the tight end of the 7% to 7¼% price talk. The sale generated $754.25 million of proceeds.
UBS Investment Bank ran the books for the notes, which were sold via Rule 144A with registration rights. Bear Stearns & Co and PNC were co-managers.
Proceeds will be used to fund the tender for $220.1 million of the company's 6.95% senior notes due 2007, to buy back $132 million of its 4¾% convertible senior notes due 2023 and for general corporate purposes.
The issue was upsized from $725 million.
Massey Energy, with headquarters in Richmond, Va., and operations in West Virginia, Kentucky and Virginia, is the fourth largest coal company in the United States based on produced coal revenue.
| Issuer: | Massey Energy Co.
|
| Face amount: | $760 million (increased from $725 million)
|
| Proceeds: | $754.25 million
|
| Maturity: | Dec. 15, 2013
|
| Security description: | Senior notes
|
| Bookrunner: | UBS Investment Bank
|
| Co-managers: | Bear Stearns & Co., PNC
|
| Coupon: | 6 7/8%
|
| Price: | 99.243
|
| Yield: | 7%
|
| Spread: | 251 basis points
|
| Call features: | Callable after Dec. 15, 2009 at 103.438, 101.719, par on and after Dec. 15, 2011
|
| Equity clawback: | Until Dec. 15, 2008 for 35% at 106.875
|
| Trade date: | Dec. 9
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7%-7¼%
|
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