Coal producer Alpha Natural Resources' term loan "B" broke in the secondary market last week at 101 1/8. Citigroup is the lead on the $250 million loan, which is priced at LIBOR plus 1 3/4%. One trader said investors like the credit. "It is still a good company. It has had good earnings," he said. Alpha reported net income of $26.4 million for the fourth quarter compared to $12.2 million in the same period of 2004. The 2005 third quarter results include a charge for stock-based compensation related to Alpha's initial public offering in February 2005. Net income for the first six months of 2005 was $0.6 million, compared with $13.5 million for the first six months of 2004. The six-month results include a $39.8 million in stock-based compensation charges related to the IPO.
Alpha Natural Resources Breaks Above Par