Alpha Natural’s Debt Reprieve Comes at Bondholder Expense
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Alpha Natural Resources Inc. is buying itself time at the expense of unsecured bondholders.
Faced with the weakest coal demand in decades, the second-largest U.S. producer issued $500 million of higher-ranking notes this week to extinguish debt with “near-term maturities.” The sale matches its biggest since 2011, when Alpha Natural bought Massey Energy in the industry’s most-expensive takeover just as steelmaking coal prices peaked.