Peabody draws down $1.65 billion revolver’s remaining $120 million

By Wendy Van Sickle

Columbus, Ohio, Feb. 18 – Peabody Energy Corp. drew down the remaining $120 million available under its $1.65 billion revolving credit facility on Feb. 12, according to an 8-K filing with the Securities and Exchange Commission.

The revolver and a $1.2 billion term loan facility are provided for by a Sept. 24, 2013 credit agreement with Citibank, NA, as administrative agent, and Citigroup Global Markets, Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., Credit Agricole CIB, HSBC Securities (USA) Inc., Morgan Stanley Senior Funding, Inc. and PNC Capital Markets LLC and RBS Securities Inc. as joint lead arrangers and joint book managers.

The revolver expires on Sept. 24, 2018, or on Aug. 15, 2018 if Peabody’s 6% senior notes due 2018 are still outstanding.

The borrowings will initially bear interest at around 3% a year, according to the filing.

Peabody intends to use the borrowings for general corporate purposes.

As previously reported, in a Feb. 11 conference call Peabody chief financial officer Amy Schwetz said the draw down was intended “to provide Peabody with the maximum amount of control and flexibility with respect to its liquidity position, in light of continued challenging marketing positions” after “unprecedented commodity and coal market issues heavily weighed on” the company’s performance in 2015.

Peabody is a St. Louis-based coal producer.

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