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Peabody Energy terminates tender offers for $1B senior notes

Peabody Energy Corp. terminated its previously announced tender offers to purchase for $1 billion outstanding notes and concluded its refinancing activities.

The company launched cash tender offers to purchase any and all of its $500 million in outstanding 6.0% senior secured notes due 2022 and any and all of its $500 million in outstanding 6.375% senior secured notes due 2025, as part of a refinancing initiative to accommodate the pending Powder River Basin/Colorado joint venture with Arch Coal Inc.

Peabody Executive Vice President and CFO Amy Schwetz said while the company intends "to continue to evaluate the capital markets with a disciplined approach," Peabody considered the termination of tender offers since the current debt markets do not accommodate Peabody's intention of completing the offers and achieving its refinancing objectives. Peabody is now planning to "pursue alternative means to accomplish its longer-term objectives in a manner that adds value to the enterprise."

The termination of the offers also includes the termination of the related consent solicitations in respect of the notes. Following the termination, none of the tendered notes will be accepted for purchase and no consideration will be paid or become payable to holders who have tendered their notes. All notes previously tendered and not withdrawn will be promptly returned or credited back to their respective holders.

Additionally, the previously announced supplemental indentures with respect to the 2022 notes and the 2025 notes will not become operative, and the existing terms of the Notes will remain in effect.