Peabody offers to purchase portion of 8½% secured notes, loan

By Wendy Van Sickle

Columbus, Ohio, Jan. 14 – Peabody Energy Corp. is offering to purchase up to $38,607,000 in total accreted value of its 8½% senior secured notes due 2024, according to a press release on Friday.

The company is offering to purchase the notes at 94.94, plus interest to the settlement date.

The offer will expire at 5 p.m. ET on Feb. 14.

Tenders may be withdrawn at any time before the expiration time.

Settlement is planned two business days after the expiration.

Concurrently, Peabody is offering to make a debt repurchase offer under its credit agreement from Jan. 29, with JPMorgan Chase Bank, NA as administrative agent.

If the notes tendered and the amount repurchased from the loan exceed the $38,607,000 repurchase amount, the tendered notes may be prorated. The loan repurchase would also be prorated.

The available repurchase amount for the offer is equal to 25% of $154,431,000, which is the total aggregate principal and commitment amounts of priority-lien debt (as defined in the indenture) repurchased by Peabody pursuant to open-market repurchases during the debt repurchase quarterly period. In addition, the offer price of $949.40 represents the price per $1,000 accreted value of notes that is the weighted-average repurchase price for all priority-lien debt repurchased by Peabody during the debt repurchase quarterly period.

Wilmington Trust, NA is the trustee.

Peabody is a St. Louis-based private sector coal company.

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