Cases & Deals

Peabody Energy closes $800 million DIP financing package

Client(s) Peabody Energy Corporation

Jones Day represented Peabody Energy Corporation, a large private-sector coal company, in connection with their $800 million debtor-in-possession superpriority secured financing arrangement. The financing arrangement provides Peabody Energy with a term loan not to exceed $500 million, secured by substantially all of the assets of the loan parties, which would be used for working capital and general corporate purposes, to cash collateralize letters of credit and to pay fees and expenses; a cash collateralized letter of credit facility in an amount up to $100 million; and a bonding accommodation facility in an amount up to $200 million.