Arch Coal
Arch Coal is the second largest coal producer in the U.S. Arch Coal was formed in 1997 through the merger of Ashland Coal and a private company, Arch Minerals Corporation. Since then Arch Coal has continued to grow especially in the Powder River Basin. Arch Coal operates 32 mines and has 5.5 billion tons of coal reserves.
Alpha Natural Resources, Inc.
Alpha was formed in 2004 through the acquisition of the Brinks Company coal business and Coastal Coal Company. In 2011 Alpha agreed to buy Massey Energy for $7 billion. The company operates 81 mines and has 4.3 billion tons of reserves.
Trading Opportunities for High Yield Junk Bond Investors Willing to Speculate on "Catching a Bottom"
Arch Coal 7's due 6/15/19, approx price 70, current yield 10 %, YTM 16.21%
Arch Coal 7 1/4 due 10/1/20, approx price 69, current yield 10.05 %, YTM 15.22 %
Arch Coal 7 1/4 due 6/15/21, approx price 68, current yield 10.7 %, YTM 14.88 %
Alpha Natural 6 1/4 due 6/1/21, approx price 69, current yield 9.1 %, YTM 13.34 %
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Stephen P. Vlahos