Peabody Energy received final approval from the U.S. Bankruptcy Court for the Eastern District of Missouri for its $800 million debtor-in-possession financing facility.
The approval, granted following a hearing before Judge Barry S. Schermer, provides Peabody with access to capital to ensure the company can continue operating its business during the Chapter 11 process. The financing by a lender group that includes a number of secured lenders and unsecured noteholders, includes a $500 million term loan, a $200 million bonding accommodation facility and a cash-collateralized $100 million letter of credit facility.
According to a related SEC filing, the lender group was led by Citibank as administrative agent and L/C issuer.
“We are pleased with the outcome of today’s hearing, including the court’s final approval of our DIP financing,” said Peabody President and CEO Glenn Kellow. “This marks another important step as we move through the Chapter 11 process and reposition the company for long-term success.”