Alpha Natural tenders for some Alpha Appalachia 3.25% convertibles

By Susanna Moon

Chicago, Sept. 27 - Alpha Natural Resources, Inc. said the company and Alpha Appalachia Holdings, Inc. (formerly Massey Energy Co.) began a cash tender offer for up to $350 million principal amount of the outstanding 3.25% convertible senior notes due 2015 issued by Alpha Appalachia.

The total purchase price will be $940 per $1,000 principal amount of notes tendered by 5 p.m. ET on Oct. 11, the early tender date, and includes an early tender premium of $20.00 per $1,000 of notes.

The tender offer will expire at 11:59 p.m. ET on Oct. 25.

Holders who tender after the early tender deadline will not receive the early tender premium.

If the amount of notes exceeds the offer cap, the notes will be purchase on a prorated basis.

The company also will pay accrued interest up to but excluding the settlement date, which is expected to be one business day after the early expiration date for early tenders or one business day following the offer expiration date for remaining tenders.

The tender offer is conditioned on completion of an offering by Alpha of one or more series of its senior notes, with enough proceeds to fund the offer.

Citigroup Global Markets Inc. (800 831-9146 or Barclays (800 438-3242) are the dealer managers for the tender offer. D.F. King (800 967-4617) is the tender agent and information agent.

Alpha Natural Resources is a Bristol, Va.-based producer of coal.

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