Peabody intends to use the net proceeds from the sale of the notes to fund the tender offer to purchase for cash any and all of the $US650 million aggregate principal amount outstanding of its 7 3/8% senior notes due 2016, to fund the redemption or satisfaction and discharge of all 2016 notes that are not tendered in the tender offer and for general corporate purposes, which may include the payment of its federal coal lease expenditures.
The closing of the sale of the notes, which is subject to market and other customary conditions, is expected to occur on or about March 16, 2015.
The notes will be secured by a second-priority lien on all of the assets that secure the company's and the guarantors' obligations under the company's senior secured credit facility, subject to the permitted liens and other limitations.
