Peabody Energy reduced the interest rate and extended the maturity of its senior secured term loan.

According to a related 8-K filing, Goldman Sachs Bank acted as administrative agent on the transaction.

The term loan will now bear interest at a rate of LIBOR plus 2.75%, reflecting a reduction of 75 basis points. The amendment also extends the maturity of the term loan by three years to 2025 and modifies certain other terms, including the elimination of the capital expenditures covenant under the loan and revolving credit facility.

Upon closing, Peabody plans to repay approximately $46 million of its term loan, which would bring the total outstanding term loan balance to $400 million and Peabody’s consolidated debt balance to approximately $1.4 billion. The company’s stated long-term gross debt target is $1.2 billion to $1.4 billion.

Peabody expects the additional debt repayment and interest rate reduction to generate annual cash interest savings of approximately $5 million on a pro forma basis.

Peabody is a global pure-play coal company, serving power and steel customers in more than 25 countries on six continents.