Peabody Announces Full Redemption of 3.250% Convertible Senior Notes due 2028
Peabody will fully retire its 3.250% convertible notes due 2028, offering an enhanced cash-settled conversion option ahead of the November 18, 2026 redemption.
Rhea-AI Summary
Peabody (BTU) will redeem all outstanding 3.250% Convertible Senior Notes due 2028 on November 18, 2026 at 100% of principal plus accrued and unpaid interest. Upon completion, no Notes will remain outstanding.
Holders may convert any or all Notes from the date of this announcement until 5:00 p.m. New York City time on November 16, 2026. The current conversion rate of 52.8309 shares per $1,000 principal is increased by 2.0971 shares due to a make-whole fundamental change, resulting in a rate of 54.928 shares per $1,000 for conversions through November 16, 2026. Peabody has elected to settle all conversions entirely in cash, based on daily conversion values over a 40-trading-day observation period.
Positive
- Full redemption of 3.250% notes eliminates this convertible debt after November 18, 2026
- Enhanced conversion rate raised to 54.928 shares per $1,000 principal through November 16, 2026
- Cash settlement election means all conversion obligations will be satisfied 100% in cash
Negative
- Higher effective conversion cost from 2.0971 additional shares per $1,000 principal as a make-whole adjustment
- Cash-only settlement implies a future cash outlay to satisfy converting noteholders
Key Figures
- Note coupon
- 3.250%
- Convertible senior notes due 2028
- Redemption date
- November 18, 2026
- Full redemption deadline
- Redemption price
- 100% of principal amount
- Plus accrued and unpaid interest
- Initial conversion rate
- 52.8309 shares per $1,000 principal amount
- Rate in effect on the announcement date
- Increased conversion rate
- 54.928 shares per $1,000 principal amount
- Applicable through November 16, 2026
- Conversion-rate increase
- 2.0971 shares per $1,000 principal amount
- Make-whole fundamental change adjustment
- Observation period
- 40 consecutive trading days
- Used to determine daily conversion values
- Cash settlement
- 100% in cash
- Conversion obligation settlement
Historical Context
-
Reported repurchase of $241.2 million of 2028 convertible notes during quarterly results.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
convertible senior notes financial
make-whole fundamental change financial
indenture financial
cash settlement financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
The redemption date for the Notes is November 18, 2026 (the "Redemption Date"). The Notes will be redeemed on the Redemption Date at a redemption price equal to
Holders of the Notes may surrender all or any portion of their Notes for conversion at any time from and including the date of this announcement until the close of business (5:00 p.m.,
The conversion rate in effect on the date of this announcement is 52.8309 shares of Peabody's common stock per
Peabody will satisfy its conversion obligation by paying or delivering, for each
Wilmington Trust, National Association is acting as trustee, paying agent and conversion agent under the Indenture, and its address is Rodney Square North, 1100 North Market Street,
Holders who have questions or who wish to discuss the redemption may contact Investor Relations at Peabody, email ir@peabodyenergy.com.
This press release does not constitute a notice of redemption under the Indenture. The redemption notice is being delivered to holders separately in accordance with the terms of the Indenture. This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. No representation is made as to the correctness or accuracy of the CUSIP number or ISIN, either as printed on the Notes or as contained in this press release.
Peabody is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future.
Contact:
Kala Finklang
ir@peabodyenergy.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. All forward-looking statements speak only as of the date they are made and reflect Peabody's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, Peabody disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Among those risks and uncertainties are the risks relating to Peabody's business described in Peabody's most recent Annual Report on Form 10-K and in other periodic reports that Peabody files from time to time with the SEC. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such description of risks to be a complete set of all potential risks or uncertainties.
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SOURCE Peabody
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
Until when can holders convert Peabody's 3.250% Convertible Senior Notes due 2028?
Holders may surrender all or any portion of their Notes for conversion at any time from and including the date of this announcement until the close of business (5:00 p.m., New York City time) on November 16, 2026, which is the second business day immediately preceding the November 18, 2026 Redemption Date.
What is the applicable conversion rate for Peabody's notes during the conversion period?
The conversion rate in effect on the date of this announcement is 52.8309 shares of Peabody common stock per $1,000 principal amount of Notes. Because the redemption constitutes a "make-whole fundamental change" under the Indenture, the rate is increased by 2.0971 shares, so conversions on or before the close of business on November 16, 2026 use a rate of 54.928 shares per $1,000 principal amount.
How will Peabody settle conversions of the 3.250% Convertible Senior Notes due 2028?
Peabody will satisfy its conversion obligation for each $1,000 principal amount of Notes converted by paying the sum of the daily conversion values for each of the 40 consecutive trading days during the relevant observation period. Peabody has elected cash settlement, so all conversion obligations will be settled 100% in cash.
Does this press release serve as the official notice of redemption under the Indenture?
No. The press release does not constitute a notice of redemption under the Indenture. The formal redemption notice is being delivered to holders separately in accordance with the terms of the Indenture.
Who is the trustee and where can holders direct administrative questions about the notes?
Wilmington Trust, National Association is the trustee, paying agent and conversion agent under the Indenture. Its address is Rodney Square North, 1100 North Market Street, Wilmington, DE 19890-1626. Holders with questions or who wish to discuss the redemption may also contact Peabody Investor Relations at ir@peabodyenergy.com.