Peabody Energy Corp. announced Feb. 1 that a special purpose wholly owned subsidiary is offering up to $1 billion aggregate principal amount of senior secured notes due 2022, in connection with its restructuring.

"If Peabody's plan of reorganization is confirmed and certain other conditions are satisfied on or before Aug. 1, 2017, the net proceeds from the offering will be released from escrow to fund a portion of the distributions to creditors provided for under the plan of reorganization, and Peabody will become the obligor under the notes," the company wrote.

The company said that after it emerges from Chapter 11 bankruptcy, the notes will be jointly and severally and unconditionally guaranteed on a senior secured basis by substantially all of its current and future direct or indirect U.S. subsidiaries, and will be secured by a first priority lien on substantially all of its tangible and intangible assets.