#1 Lawyer Network
NEW YORK – Peabody Energy, the world’s largest
private-sector coal miner, began marketing a US$1.5bn debt sale
this week as part of a reorganization plan to emerge from
The company is looking to raise the funds through first-lien
debt, split across a US$1bn five-year non-call two bond and a
US$500m loan, according to an investor presentation seen by IFR.
The new debt sale will help Peabody repay roughly US$3bn in
existing first-lien claims and complete a reorganization plan,
that is expected to cut debt by over US$5bn.
Existing second-lien and unsecured creditors are expected to
end up with a majority of the company once it emerges from
bankruptcy, according to the presentation.
In the presentation, Peabody said it expects its first-lien
leverage and total leverage to decline to 2.2 and 2.9 times
Company executives are scheduled to kick off a one-week
roadshow for the bond sale on Thursday, with meetings taking
place in Los Angeles, San Francisco, New York, New Jersey and
Boston. Pricing for the bond is tentatively scheduled for
Goldman Sachs is the lead underwriter on the financing,
while JP Morgan, Credit Suisse and Macquarie are participating
with smaller roles.
#1 Lawyers Search Engine