Walter Energy sets investor call for $320 million tap of 9½% notes due 2019; pricing Tuesday

By Paul A. Harris

Portland, Ore., July 8 – Walter Energy, Inc. plans to participate in an investor conference call scheduled for 11:30 a.m. ET Tuesday to discuss a $320 million add-on to its 9½% senior secured notes due Oct. 15, 2019, according to a syndicate source.

The Rule 144A for life deal is set to price Tuesday.

Morgan Stanley & Co. LLC, BMO Securities, Credit Agricole CIB, Goldman Sachs & Co., J.P. Morgan Securities LLC and Scotia Capital are the joint bookrunners. BBVA and Regions Securities are the co-managers.

The notes become callable on Oct. 15, 2016 at 107.125.

The Birmingham, Ala.-based pure-play metallurgical coal producer plans to use the proceeds to repay $298.1 million of its revolving credit facility debt.

The original $450 million notes priced at 99.425 to yield 9 5/8% in September 2013.

A previous $200 million add-on priced at 101.5 to yield 9.147% on March 19.

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