Murray Energy's Bonds Collapse After Coal Miner Said to Lower Outlook
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Murray Energy Corp., which just completed its first purchase of overseas assets, is struggling to convince creditors it can withstand the coal slump at home in the U.S.
A $1.3 billion bond issue sold by the miner in April dropped 10.8 cents to 47 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. In a presentation to bondholders on Friday, the closely held company lowered its earnings outlook for 2015 to a range of $600 million to $660 million from a projection last quarter of $648 million to $790 million, according to two people with knowledge of the matter.