Peabody Plans $225 Mln Convertible Notes Offering, Option For $25 Mln More

(RTTNews) - U.S. coal miner Peabody Energy Corporation (BTU) said on Thursday it plans to offer $225 million in convertible senior notes due 2031, with an option for initial purchasers to buy up to an additional $25 million.

Pricing terms, including the interest rate and initial conversion rate, have not been determined.

Peabody intends to use proceeds to fund capped call transactions and to repurchase a portion of its outstanding 3.250 percent convertible senior notes due 2028.

The notes, which will be senior unsecured obligations, will mature on June 1, 2031, unless earlier repurchased, redeemed or converted.

Interest will be paid semi-annually, Peabody said.

On the NYSE, shares of Peabody closed Wednesday's trading 1.70 percent higher at $26.34