Peabody successfully completed an amendment of its senior secured credit agreement and closed on commitments for a $270 million revolving credit facility, which is expected to lead to the release of a comparable amount of restricted cash over time.
“We are pleased to report yet another milestone in our deliberate financial approach to generate cash, reduce debt, invest wisely and return cash to shareholders,” said Executive Vice President and Chief Financial Officer Amy Schwetz. “In just the past several months, we have continued to generate healthy cash flows, repaid $300 million of debt, advanced several non-core asset sales, repurchased more than $100 million of stock and now have closed on a revolver that is expected to free up approximately half of our restricted cash balance and facilitate additional capital returns.”
The company’s revolving credit facility will bear interest at a rate of LIBOR + 3.25% and is subject to certain financial covenants.
Goldman Sachs Bank USA served as left lead joint lead arranger and administrative agent for the $270 million bank syndicate revolving credit facility. Additional joint lead arrangers and bookrunners include BMO Capital Markets, Credit Suisse and JP Morgan Chase Bank. Other lenders include Macquarie Bank, Regions Bank and Commerce Bank.
Peabody is a private-sector coal company.