Peabody says $503.62 million 6 7/8% notes tendered in cash offer

By Devika Patel

Knoxville, Tenn., Sept. 9 - Peabody Energy Corp. announced that $503.62 million of its $650 million in 6 7/8% senior notes due 2013 were tendered as part of a cash offer for all of the notes.

Of the notes, $503.5 million, or 77.5%, were tendered prior to the early deadline of 5 p.m. ET on Aug. 24.

The tender offer launched on Aug. 11 and expired at midnight ET on Sept 8.

Holders who tendered prior to the early deadline will receive the total consideration of $1,013.96 per $1,000 in notes, which includes an early tender premium of $20.00 per $1,000 in notes, plus interest up to, but not including, the payment date.

Holders who tender their securities after the early deadline but on or prior to the expiration date will receive the tender offer consideration of $993.96 per $1,000 of the notes, plus interest to the payment date.

Bank of America Merrill Lynch (888 292-0070 or 980 388-9217) and Morgan Stanley (800 624-1808 or 212 761-5384) were the dealer managers. Global Bondholder Services Corp. (866 470-4500) was the information agent.

The company will redeem for cash all notes that remain outstanding after the tender. It will pay 101.146 in the redemption on Sept. 10.

Peabody Energy is a St Louis-based coal company.

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