Peabody's note swap

PEABODY Energy has filed a prospectus with the Securities and Exchange Commission offering a debt swap.
Peabody's note swap Peabody's note swap Peabody's note swap Peabody's note swap Peabody's note swap

Peabody at work in the Powder River Basin. Courtesy Peabody Energy.

Staff Reporter

It is offering to exchange a bit over $1.5 billion aggregate principal amount of 6% senior notes that are due in 2018 and $1.34 billion worth of 6.25% notes due 2021 for all of its existing 6.25% senior notes due 2021.

The offer expires on a minute before midnight, New York time, on October 16, unless Peabody opts to extend it – which it says it has no plans to do.

By doing this, the company says it is allowing investors in those unregistered notes to exchange them for freely tradable notes that have been registered under the Securities Act.

On November 15, 2011, Peabody issued a $1.6 billion aggregate principal amount of 6% senior notes due 2018 and $1.5 billion aggregate principal amount of 6.25% senior notes due 2021.

Since the issue date Peabody bought back $81.2 million worth of the 6% senior notes due 2018 and $160.4 million worth of the 6.25% senior notes due 2021.

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