Murray Energy raises payment in tender offer for 8 5/8%, 9˝% notes

New York, March 30 – Murray Energy Corp. announced an increase in the payment in its cash tender offer for its 8 5/8% senior secured notes due 2021 and 9˝% notes due 2020.

The company will now pay $1,109.70 per $1,000 principal amount of the 8 5/8% notes and $1,178.70 per $1,000 principal amount of the 9˝% notes, according to a news release.

Those prices are up from $1,100.00 and $1,150.00 respectively.

As before, both figures include an early tender payment of $50.00 per $1,000 that will only be paid to holders who tender by the early tender deadline of 5 p.m. ET on April 8.

Murray Energy also announced that “a large majority” of holders of both series of notes have agreed to tender under the terms of the amended offer.

Those holders have also agreed to deliver consents under the separate consent solicitation.

That solicitation is amended to make it conditional on Murray accepting validly tendered notes and paying at least the amount on offer in the amended tender.

Murray Energy announced the tender on March 26.

The company is also soliciting consents to amend the note indentures in a separate offer.

Both offers are intended to allow changes to the company’s capital structure as part of its acquisition of Foresight Energy GP LLC and Foresight Energy LP and to allow additional operational flexibility following the acquisition.

In particular, the amendments will allow Murray to take on additional secured debt in order to finance the transaction.

The tender ends at 11:59 p.m. ET on April 22.

Murray will also pay accrued interest up to but excluding the payment date.

Tendered notes may only be withdrawn before the early tender deadline.

The consent solicitation expires at 5 p.m. ET on March 31 and is for holders of record as of March 13. It is subject to a condition related to the tender offer.

Murray previously announced a consent solicitation on March 16 to amend the notes that had been due to expire at 5 p.m. ET on March 25 after being extended from 5 p.m. ET on March 24. The consent payment will be $50.00 per $1,000 principal amount of 8 5/8% notes and $75.00 per $1,000 of 9˝% notes.

Deutsche Bank Securities Inc. (212 250-7527 or 855 287-1922) and Goldman Sachs & Co. (212 902-6941 or 800 828-3182) are dealer managers and solicitation agents. D.F. King & Co., Inc. (877 283-0316) is information and tender agent for the tender offer and information and tabulation agent for the consent solicitation.

Murray Energy is a St. Clairsville, Ohio-based coal company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.