Chicago, Feb. 24 – Peabody Energy Corp. priced an upsized offer of $275 million 3.25% convertible senior notes due 2028 with an initial conversion premium of 32.5% after the market close on Thursday, according to a press release.
Pricing came right in the middle of 3% to 3.5% coupon talk and the 30% to 35% initial conversion premium talk, according to a market source.
Goldman Sachs & Co. LLC and Jefferies LLC are bookrunners for the Rule 144A offering.
The initial purchasers have a 13-day greenshoe option for an additional $45 million of notes, upsized from $37.5 million.
The notes are non-callable until March 1, 2025 when they become callable for cash subject to a 130% hurdle.
They are putable upon a fundamental change. There is dividend protection.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used to redeem the full outstanding $62.618 million of the company’s 8.5% senior secured notes due 2024 and a portion of its 6.375% senior secured notes due 2025.
Peabody Energy is a St. Louis-based coal producer.
Abigail W. Adams contributed to this story.
| Issuer: | Peabody Energy Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $275 million
|
| Greenshoe: | $45 million
|
| Maturity: | March 1, 2028
|
| Bookrunners: | Goldman Sachs & Co. LLC and Jefferies LLC
|
| Coupon: | 3.25%
|
| Exchange premium: | $19.85
|
| Exchange price: | 32.5%
|
| Exchange rate: | 50.3816
|
| Call options: | Non-callable until March 1, 2025 when they become callable for cash subject to 130% hurdle
|
| Trade date: | Feb. 24
|
| Settlement date: | March 1
|
| Distribution: | Rule 144A
|
| Price talk: | Coupon of 3% to 3.5%; initial conversion premium of 30% to 35%
|
| Stock symbol: | NYSE: BTU
|
| Stock price: | $14.98 on Feb. 25
|
| Market capitalization: | $2 billion
|
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