ST.
LOUIS, Jan. 18, 2024 /PRNewswire/ -- Peabody
(NYSE: BTU) today announced the closing of a new $320 million senior secured revolving credit
facility maturing in January 2028,
subject to certain conditions relating to the company's outstanding
Convertible Senior Notes due March 1,
2028. Revolving loans under the facility bear interest at a
rate of SOFR plus an applicable margin ranging from 3.50% to 4.25%,
depending on the company's total net leverage ratio. At Peabody's
current total net leverage ratio, the margin would be 3.50%.
Letters of credit under the facility are subject to a fee equal to
the applicable margin. The facility will be guaranteed by certain
of Peabody's subsidiaries.
"This new revolving credit facility is intended to further
enhance our financial resiliency during the period of investment at
the Centurion Mine as part of our strategy to reweight Peabody's
long-term production and revenue toward premium Australian
metallurgical coal," said Mark
Spurbeck, Peabody's Chief Financial Officer. "Over the past
two years, we have strengthened our balance sheet and implemented
an initial $1.0 billion share
repurchase program. We are now taking the next steps to achieve our
goal of making the Centurion Mine a global leader in the
metallurgical coal market."
PNC Bank, National Association is the administrative agent for
the revolving credit facility, and PNC Capital Markets LLC acted as
lead arranger and bookrunner in connection with the closing of the
facility.
Peabody is a leading coal producer, providing essential products
for affordable, reliable energy and steel. Our commitment to
sustainability underpins everything we do and shapes our strategy
for the future. For further information, visit
PeabodyEnergy.com.
Contact:
Karla Kimrey
314.342.7890
Forward-looking Statements
This news release contains certain forward-looking statements
regarding our business and financing plans, objectives and
strategies, including with respect to the Centurion mine and our
long-term production strategy, that are based on our current
expectations and involve numerous risks and uncertainties that may
cause these forward-looking statements to be inaccurate. Risks that
may cause these forward-looking statements to be inaccurate
include, among others: (i) prevailing market conditions, (ii) the
impact of general economic, industry or political conditions in
the United States or
internationally; and (iii) the other risks detailed from
time-to-time under the caption "Risk Factors" and elsewhere in our
Securities and Exchange Commission filings and reports, including,
but not limited to, our most recent annual report on Form 10-K and
quarterly report on Form 10-Q. Such forward-looking statements
speak only as of the date hereof and readers should not unduly rely
on such statements. We undertake no obligation to update the
information contained in this press release, including in any
forward-looking statements.
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SOURCE Peabody