According to a statement and filing with the US Securities and Exchange Commission, the company will sell all shares at a public offering price of $49.75 each to raise a net total of $406 million.
Under the offer, which is expected to close March 29, Massey has granted underwriters a 30-day option to buy an additional 1.275 million shares.
Massey said last week it planned to buy private coal producer Cumberland Resources in a cash and stock deal. The transaction is expected to close in the second quarter.
Cumberland is one of the largest privately held coal producers in the United States with 2009 coal revenue of $550 million generated from the production and sale of 7.8 million tons of high-quality central Appalachian coal. Based in Abingdon, Virginia, it operates primarily underground coal mines in southwestern Virginia and eastern Kentucky.
Its assets include an estimated 416Mt of contiguous coal reserves, a preparation plant in Kentucky served by the CSX railroad, and a preparation plant in Virginia served by the Norfolk Southern railroad.
Massey expects to be able to produce 5Mt of metallurgical-quality coal annually with the existing Cumberland assets without spending additional development capital.
On a pro forma basis, after adding the Cumberland reserves, Massey will have an estimated total reserve base of 2.9 billion tons, including 1.3Bt of metallurgical quality.
