Loan & DebtJun 2, 2026, 10:26 AM
Peabody Energy Issues $250M Convertible Notes, Repurchases 2028 Debt
AI Summary
Peabody Energy Corporation completed a private offering of $250 million aggregate principal amount of 0.50% Convertible Senior Notes due 2031. The net proceeds of approximately $243.3 million will be used to fund Capped Call Transactions and, along with available cash, to repurchase $241.2 million of its outstanding 3.250% Convertible Senior Notes due 2028 for a total cash purchase price of approximately $388.8 million. The new notes are senior unsecured obligations, mature on June 1, 2031, and are convertible under specific conditions.
Key Highlights
- Peabody Energy completed a private offering of $250 million in 0.50% Convertible Senior Notes due 2031.
- The net proceeds from the offering were approximately $243.3 million.
- Approximately $16.7 million of the proceeds will fund Capped Call Transactions.
- The company will repurchase $241.2 million of its 3.250% Convertible Senior Notes due 2028 for $388.8 million.
- The new notes bear interest at 0.50% per year, payable semi-annually.
- The initial conversion price is approximately $38.32 per share, a 32.5% premium over the common stock price on May 28, 2026.
Price Impact
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