U.S.-based coal producer Peabody Energy Corp. borrowed $300.0 million from a $565.0 million revolving credit facility, aiming to maintain financial flexibility as it adjusts to the global COVID-19 outbreak.
Peabody said it does not expect to use the cash for any liquidity needs but may use the proceeds in the future for general corporate purposes. The borrowed cash combined with its cash on hand should provide the company "with adequate flexibility in the current environment," it said in an April 3 securities filing.
The company noted there were no current loans under the revolving facility as of the end of 2019, with $66.4 million in letters of credit issued and outstanding related to the financial instrument. The revolving credit facility matures in September 2023.