Loan & DebtMay 29, 2026, 06:12 AM
Peabody Prices $225M Convertible Senior Notes Offering Due 2031
AI Summary
Peabody Energy Corporation announced the pricing of its private offering of $225 million aggregate principal amount of 0.50% convertible senior notes due 2031. The notes will mature on June 1, 2031, with an initial conversion price of approximately $38.32 per share, representing a 32.5% premium over the current stock price. Peabody intends to use approximately $15.0 million of the net proceeds to fund capped call transactions and, along with available cash, repurchase approximately $241.2 million of its outstanding 3.250% Convertible Senior Notes due 2028 for about $388.8 million.
Key Highlights
- Peabody priced an offering of $225 million aggregate principal amount of 0.50% convertible senior notes due 2031.
- The notes will mature on June 1, 2031, with interest payable semi-annually.
- Initial conversion rate is 26.0970 shares per $1,000 principal, an initial conversion price of $38.32 per share.
- The initial conversion price represents a 32.5% premium over Peabody's common stock price of $28.9197.
- Net proceeds are estimated at $218.9 million, or $243.3 million if initial purchasers exercise their option.
- Peabody will use $15.0 million for capped call transactions and repurchase $241.2 million of 3.250% Convertible Senior Notes due 2028 for $388.8 million.
Price Impact
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