Massey Energy refinances

US MINING company, Massey Energy, completed the replacement of its short-term credit facilities on July 2.

Staff Reporter

The package consists of a $US105 million revolving multi-year credit facility maturing on January 1, 2007 and a 5-year $US250 million term loan with an early maturity date of January 1, 2007 if the Company's existing 6.95% Senior Notes are not refinanced by that date.

"We are pleased to meet our goal of completing this refinancing well ahead of the expiration of our existing facilities," said Don L. Blankenship, Massey CEO and chairman.

"The structure of the refinancing has enabled the Company to raise more than initially planned and has increased our liquidity position and letters of credit capacity to our targeted objectives."

The first step in the refinancing occurred in May when $US132 million of 4.75% convertible notes were issued in a private placement. Proceeds were used to repay outstanding borrowings and to reduce commitments under its existing revolving credit facilities.

Massey Energy Company, headquartered in Richmond, Virginia, is the fourth largest coal company in the United States based on produced coal revenue.

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