Peabody Announces Offer To Purchase Up To $22.5 Million In Aggregate Accreted Value Of Its 8.500% Senior Secured Notes Due 2024
Peabody (NYSE: BTU) has announced an offer to purchase up to $22.5 million in aggregate accreted value of its 8.500% Senior Secured Notes due 2024. The purchase price will be 80% of the accreted value, plus accrued interest. The offer expires at 5:00 p.m. ET on March 12, 2021, unless extended. If the total tendered exceeds the maximum amount, purchases will occur on a pro rata basis. This offer complies with the indenture requirements following Peabody's recent exchange offer that settled on January 29, 2021.
- Offer to purchase 2024 Notes reflects confidence in financial stability.
- Engagement in proactive debt management may improve liquidity.
- The offer price at 80% of accreted value may indicate lower perceived value of 2024 Notes.
- If the tender exceeds $22.5 million, not all offers may be accepted, leading to potential shareholder concerns.
ST. LOUIS, Feb. 10, 2021 /PRNewswire/ -- Peabody (NYSE: BTU) today announced its offer to purchase (the "Offer") for cash up to
The Offer will expire at 5:00 p.m., New York City time, on March 12, 2021, unless extended or earlier terminated by Peabody (the "Expiration Time"). Subject to the Maximum Tender Amount, for each
If the aggregate accreted value of the 2024 Notes tendered in the Offer exceeds
The 2024 Notes are governed by an indenture, dated as of January 29, 2021, by and among Peabody, the guarantors party thereto (the "Guarantors") and Wilmington Trust, National Association, as trustee (the "Trustee") (as amended and restated by the First Supplemental Indenture, dated as of February 3, 2021, among Peabody, the Guarantors and the Trustee, and as further amended, supplemented, restated or otherwise modified to the date hereof, the "Indenture"). Under the terms of the Indenture, within 15 days of the settlement date of Peabody's previously-completed exchange offer (the "Exchange Offer"), Peabody is obligated to offer to purchase for cash an aggregate accreted value of up to the Maximum Tender Amount of its outstanding 2024 Notes at the price described above. The Exchange Offer settled on January 29, 2021.
None of Peabody, its board of directors (or any committee thereof), Wilmington Trust, National Association, the depositary for the Offer, or the Trustee or their respective affiliates is making any recommendation as to whether or not holders should tender all or any portion of their 2024 Notes in the Offer.
This announcement is not an offer to purchase or sell, or a solicitation of an offer to purchase or sell any securities. The Offer is being made solely by the Offer to Purchase. The Offer is not being made to holders of 2024 Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.
Peabody (NYSE: BTU) is a leading coal producer, providing essential products to fuel baseload electricity for emerging and developed countries and create the steel needed to build foundational infrastructure. Our commitment to sustainability underpins our activities today and helps to shape our strategy for the future. For further information, visit PeabodyEnergy.com.
Contact:
Julie Gates
314.342.4336
Forward-looking Statements
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 Peabody expects will occur in the future are forward-looking statements. They may also include estimates of sales targets, cost savings, capital expenditures, other expense items, actions relating to strategic initiatives, demand for the company's products, liquidity, capital structure, market share, industry volume, other financial items, descriptions of management's plans or objectives for future operations and descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect Peabody's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, Peabody 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 Peabody's control, including the ongoing impact of the COVID-19 pandemic and factors that are described in Peabody's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2019, and other factors that Peabody may describe from time to time in other filings with the SEC. You may get such filings for free at Peabody's 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.
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SOURCE Peabody
FAQ
What is Peabody's recent offer related to BTU stock?
When does Peabody's tender offer for the 2024 Notes expire?
What is the purchase price for Peabody's 2024 Notes in the offer?
What happens if the total value of 2024 Notes tendered exceeds $22.5 million?
How does this offer impact Peabody's financial situation?
