Press Releases

Peabody Reduces Interest Rate And Extends Maturity Of Term Loan

ST. LOUIS, April 9, 2018 /PRNewswire/ -- Peabody (NYSE: BTU) announced today that it reduced the interest rate and extended the maturity of the company's Senior Secured Term Loan.  The transaction is expected to close on April 11, subject to customary closing conditions. 

The company's Senior Secured Term Loan would now bear interest at a rate of LIBOR plus 2.75 percent, reflecting a reduction of 75 basis points.  In addition, the amendment provides for the extension of the maturity of the term loan by three years to 2025.  Certain terms will also be modified by the amendment, including the elimination of the capital expenditures covenant under the company's term loan and revolving credit facility.  

Upon closing, Peabody plans to repay approximately $46 million of its term loan, which would bring the total outstanding term loan balance to $400 million and Peabody's consolidated debt balance to approximately $1.4 billion.  The company's stated long-term gross debt target is $1.2 billion to $1.4 billion.  Peabody expects the additional debt repayment and interest rate reduction to generate annual cash interest savings of approximately $5 million on a pro forma basis. 

Peabody (NYSE: BTU) is the leading global pure-play coal company, serving power and steel customers in more than 25 countries on six continents. The company offers significant scale, high-quality assets, and diversity in geography and products. Peabody is guided by seven core values: safety, customer focus, leadership, people, excellence, integrity and sustainability. For further information, visit PeabodyEnergy.com.

Investor Contact:
Julie Gates
314.342.4336

This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, income, earnings per share, cost savings, capital expenditures, dividends, share repurchases, liquidity, capital structure, market share, industry volume, or other financial items, descriptions of management's plans or objectives for future operations, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond the company's control, that are described in our Annual Report on Form 10-K, as well as additional factors we may describe from time to time in other filings with the SEC. You may get such filings for free at our website at www.peabodyenergy.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

Peabody. (PRNewsFoto/Peabody Energy)

 

SOURCE Peabody