Murray Energy gets needed consents to amend 10¼% senior notes due 2015

By Marisa Wong

Madison, Wis., Nov. 30 - Murray Energy Corp. said it received the necessary consents to adopt proposed amendments to the indenture governing its outstanding 10¼% senior secured notes due 2015.

The proposed amendments will allow the company to sell up to $150 million of additional notes and remove its ability to redeem the notes at 103 before Dec. 15, 2012.

The company said that as of 5 p.m. ET on Nov. 29, the expiration time of the consent solicitation that began on Nov. 22, holders of $512.81 million, or 94.6%, of the outstanding notes delivered their consents.

As a result, Murray, the guarantors for the notes, trustee Bank of New York Mellon Trust Co., NA and collateral trustee U.S. Bank NA will execute a supplemental indenture effecting the proposed amendments. The supplemental indenture will not be operative until the sale of $150 million of additional notes is completed.

In exchange for the consents, the company will pay $10 in cash for each $1,000 principal amount of notes to holders of record as of 5 p.m. ET on Nov. 19.

Proceeds will be used for general corporate purposes, including the expansion of production capacity and preparation plant processing capacity at some mining complexes.

Jefferies & Co., Inc. (888 708-5831 or 203 708-5831) and Goldman Sachs & Co. are the solicitation agents, and Global Bondholder Services Corp. (866 612-1500 or 212 430-3774) is the information and tabulation agent.

Murray Energy is a Pepper Pike, Ohio-based coal company.

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