Cases & Deals

Peabody Energy completes $1 billion offering of Senior Secured Notes

Client(s) Peabody Energy Corporation

Jones Day represented Peabody Energy Corporation (PEC), a large private-sector coal company, in connection with a Rule 144A offering of $1.0 billion aggregate principal amount of Senior Secured Notes, consisting of $500 million of 6.000% Senior Secured Notes due 2022 and $500 million of 6.375% Senior Secured Notes due 2025. Goldman Sachs & Co., J.P. Morgan, Credit Suisse, and Macquarie Capital acted as joint book-running managers for the offering.

The notes were issued in connection with the restructuring of PEC as part of PEC's plan of reorganization, which was confirmed by the U.S. Bankruptcy Court for the Eastern District of Missouri. The net proceeds from the offering were used to fund a portion of the distributions to creditors provided for under the plan of reorganization in connection with the company's emergence from chapter 11 protection in April 2017.