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Peabody Energy Pricing Announced

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Peabody Energy announced that it has successfully priced a senior secured term loan and upsized the term loan to $950 million from $500 million. The term loan, together with $500 million aggregate principal amount of Senior Secured Notes due 2022 and $500 million aggregate principal amount of senior secured notes due 2025, brings Peabody Energy’s expected total long-term debt capitalization upon Chapter 11 emergence to $1.95 billion, consistent with the total debt structure contemplated by the Company’s Second Amended Joint Plan of Reorganization.

The term loan facility will mature in 2022 and bear interest at a rate of LIBOR plus 4.50% per annum, with a 1.00% LIBOR floor. The facility is being arranged by Goldman Sachs Bank USA, JPMorgan Chase Bank and Credit Suisse Securities (USA) (as joint lead arrangers) and Macquarie Capital (USA) serving as a co-documentation agent. The term loan is expected to close on April 3, 2017, concurrent with the anticipated effective date of Peabody Energy’s Plan and subject to U.S. Bankruptcy Coourt approval. Proceeds from the term loan will be used to fund a portion of the distributions to creditors provided for under the Plan. Peabody Energy also announced pricing of its previously-announced private offering of $1.0 billion aggregate principal amount of senior secured notes, consisting of $500 million of 6.000% Senior Secured Notes due 2022 and $500 million of 6.375% Senior Secured Notes due 2025. The offering of the notes is expected to close on February 15, 2017.

If the Court confirms Peabody Energy’s Plan and certain other conditions are satisfied on or before August 1, 2017, net proceeds from the offering will be released from escrow to fund a portion of the distributions to creditors provided for under the Plan, and Peabody will become the obligor under the notes.

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The post Peabody Energy Pricing Announced appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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