Peabody Energy (NYSE: BTU) amends $400,000,000 revolving credit line
Rhea-AI Filing Summary
Peabody Energy Corporation amended its revolving credit facility on June 30, 2026. The amendment increases total revolving commitments under the Credit Agreement from $320,000,000 to $400,000,000, extends the maturity of the revolving commitments and related loans from January 18, 2028 to June 30, 2030, and modestly reduces interest-rate margins. The SOFR-based margin range moves from 3.50%–4.25% to 3.25%–4.00%, while the base-rate margin range moves from 2.50%–3.25% to 2.25%–3.00%, in each case depending on the company’s total net leverage ratio. The full terms are set out in Amendment No. 3, filed as an exhibit.
Positive
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Negative
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Insights
Peabody secures a larger, longer-dated, slightly cheaper credit line.
Peabody Energy increased its revolving credit capacity from $320,000,000 to $400,000,000, giving it more committed liquidity under its existing Credit Agreement. The maturity of these revolving commitments and Revolving Loans moved from January 18, 2028 to June 30, 2030, lengthening access to this funding source.
The amendment also trims borrowing costs: the SOFR margin band narrowed from 3.50%–4.25% to 3.25%–4.00%, and the base-rate margin from 2.50%–3.25% to 2.25%–3.00%, all tied to total net leverage. Overall, this reshapes terms on an existing facility rather than adding new long-term debt.
8-K Event Classification
2 items: 1.01, 9.01
2 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revolver commitments (new): $400,000,000
Revolver commitments (prior): $320,000,000
Maturity (prior): January 18, 2028
+5 more
8 metrics
Revolver commitments (new)
$400,000,000
Aggregate revolving commitments after Amendment No. 3
Revolver commitments (prior)
$320,000,000
Aggregate revolving commitments before Amendment No. 3
Maturity (prior)
January 18, 2028
Original maturity of revolving commitments and Revolving Loans
Maturity (new)
June 30, 2030
Revised maturity of revolving commitments and Revolving Loans
SOFR margin (prior range)
3.50%–4.25%
Old SOFR margin range based on total net leverage ratio
SOFR margin (new range)
3.25%–4.00%
New SOFR margin range based on total net leverage ratio
Base-rate margin (prior range)
2.50%–3.25%
Old base-rate margin range at company option
Base-rate margin (new range)
2.25%–3.00%
New base-rate margin range at company option
Key Terms
Revolving Credit Facility Amendment, Credit Agreement, SOFR, base rate, +1 more
5 terms
Revolving Credit Facility Amendment financial
"entered into that certain Amendment No. 3, dated as of June 30, 2026 (the “Revolving Credit Facility Amendment”)"
Credit Agreement financial
"which amends that certain Credit Agreement, dated as of January 18, 2024"
A credit agreement is a written loan contract between a borrower and a bank or other lender that lays out how much money can be borrowed, the interest rate, repayment schedule, fees, and the rules the borrower must follow. For investors, it matters because those terms affect a company’s cash costs, borrowing flexibility and risk of default — similar to how a mortgage’s rules determine a homeowner’s monthly budget and freedom to make changes.
SOFR financial
"from a rate equal to SOFR plus an applicable margin ranging from 3.50% to 4.25%"
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
base rate financial
"or a base rate plus an applicable margin ranging from 2.50% to 3.25%, at the Company’s option"
The base rate is the primary interest rate set by a central authority or used as a benchmark for pricing loans, savings and other financial products. Think of it as the anchor in a floating system: when the base rate moves, borrowing costs, corporate financing and consumer spending tend to shift too, which can change company profits and investor returns across the market.
total net leverage ratio financial
"depending on the Company’s total net leverage ratio (as defined under the Credit Agreement)"
Total net leverage ratio measures how much a company owes after using its cash, compared with the cash it generates in a year; it is usually calculated by subtracting cash from total debt and dividing that net debt by annual operating cash flow or earnings. Investors use it like a debt-to-income check for a household — a higher number means the company may struggle to cover obligations and is riskier, while a lower number suggests more cushion and financial flexibility.
FAQ
What change did Peabody Energy (BTU) make to its revolving credit facility?
Peabody Energy amended its revolving credit facility to increase total revolving commitments to $400,000,000 and extend the maturity to June 30, 2030, updating pricing and other terms under the existing Credit Agreement.
How much did Peabody Energy (BTU) increase its credit commitments by?
The company raised aggregate revolving commitments from $320,000,000 to $400,000,000, a $80,000,000 increase. This change enhances available committed liquidity under its amended Credit Agreement with the existing lender group.
When does Peabody Energy’s amended revolving facility now mature?
The maturity date for the revolving commitments and associated Revolving Loans moved from January 18, 2028 to June 30, 2030. This gives Peabody an additional period of committed access to its revolving credit line under revised terms.
How were Peabody Energy’s SOFR-based interest margins changed in the amendment?
SOFR-based margins on Revolving Loans were reduced from a range of 3.50%–4.25% to 3.25%–4.00%. The exact margin within that band still depends on Peabody’s total net leverage ratio as defined in the Credit Agreement.
What happened to Peabody Energy’s base-rate margins on the revolving facility?
Base-rate margins were lowered from a range of 2.50%–3.25% to 2.25%–3.00%. Borrowings can be priced at either SOFR plus margin or a base rate plus margin, at the company’s option, subject to leverage-based tiers.
Where can investors find the full terms of Peabody’s credit amendment?
The complete terms are set out in Amendment No. 3 to the Credit Agreement, dated June 30, 2026. This document is filed as Exhibit 10.1, titled “Amendment No. 3,” in the same current report.
AI-generated analysis. How Rhea-AI works. Not financial advice.
