(Reuters) - Alpha Natural Resources Inc ANR.N, which last week cut 1,200 jobs and closed eight mines to weather a coal price slump, announced on Thursday a public offering of $500 million senior notes.
The news sent the company’s stock up 5 percent to $6.92 in Thursday morning trading on the New York Stock Exchange.
The Virginia-based miner announced a public offering of $500 million senior notes. It would use the proceeds to partially fund the purchase price of up to $350 million of 3.25 percent convertible senior notes due in 2015.
In June, Alpha negotiated an amendment of its $1.6 billion secured credit facility to give it breathing room at a challenging time for the U.S. coal industry, in which prices have slumped over 20 percent this year due to weak demand.
Last week, Alpha said it would cut about 1,200 jobs, or 9 percent of its workforce, by early 2013, and close eight mines in Virginia, West Virginia and Pennsylvania immediately.
Reporting By Steve James; Editing by Gerald E. McCormick