BTU - Peabody to raise $250M in senior notes offering

Peabody (NYSE:BTU) trades 10.9% down after hours on planning to offer $250M principal amount of convertible senior notes due 2028 in a private offering. Initial purchasers granted 13-day settlement period to purchase up to an additional $37.5M in principal amount of notes. The notes will accrue interest payable semi-annually in arrears and will mature on Mar.1, 2028,unless earlier repurchased, redeemed or converted. The notes will be redeemable, in whole or in part for cash at Peabody's option at any time, and from time to time, on or after Mar.1, 2025. The interest rate, initial conversion rate and other terms of the notes will be determined at the offer pricing time. Net proceeds will be used to redeem all $62.618M accreted value of Peabody's outstanding 8.500% Senior Secured Notes due 2024 while remaining proceeds along with cash used to redeem a portion of Peabody's outstanding 6.375% Senior Secured Notes due 2025.

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Peabody to raise $250M in senior notes offering