Alpha Natural Resources 6% of 06/01/2019

Another intermediate bond that I researched is Alpha Natural Resources 6% of 06/01/2019. It’s CUSIP NO. is 02076XAB8. The bond’s Stand and Poor’s Rating is B+. The Moody’s Rating is B2. It recently sold for $947.50 per $1,000 Corporate Bond. The bond gives $60 per year or more than $300 by maturity. The bond has more than 5 years to maturity so it will give more than $300 plus at this price, $52.50 appreciation at maturity. Approx. total return of $352.50. This bond is good for your IRA and large ticket purchases in the future.

Alpha Natural Resources is a large American producer of metallurgical and thermal coal. It also provides services relating to equipment repairs, road construction and logistics (terminals). It doesn't produce all of the coal it sells, some is purchased and resold. Alpha operates in Virginia, West Virginia, Kentucky, Wyoming, Utah, Illinois, Tennessee, and Pennsylvania. Clients include electricity producers and steel manufacturers (metallurgical coal is used industrially while thermal is the form of coal used to generate power). The 2009 takeover of Foundation Coal also gave it the Cumberland Mine Railroad to transport coal in Pennsylvania.

On January 31, 2011 Alpha Natural Resources acquired coal producer Massey Energy for (US) $7.1 billion (to be completed mid year) creating the second biggest coal miner by market capitalization. The merged company (54% owned by Alpha Natural Resources) will be the leading producer of metallurgical coal in the US and also have the second largest reserves of coal (5.1 billion tons). Merging operations with Massey is estimated to reduce combined operating costs by $150 million. 7,000 of the 14,000 employees are in West Virginia. In 2010 demand for thermal coal rose while metallurgical coal demand was flat (made up only 14% of coal sales down from 17% in 2009).

Alpha Natural Resources settled Massey's Upper Big Branch Mine disaster liabilities with the U.S. Attorney for $209 million on December 6, 2011. The settlement included $41.5 million to the survivors and families of the deceased. The Mine Safety and Health Administration additionally assessed a $10.8 million fine for 369 citations and orders, the largest fine for a mine accident in U.S. history.



CORPORATE OFFICES

Alpha Natural Resources, Inc.

One Alpha Place

P.O. Box 16429

Bristol, VA 24209

(276) 619-4410