Peabody Energy Prices $1 Bln Senior Notes Offering

(RTTNews) - Peabody Energy Corp. (BTU) said Thursday that it has priced its offering of $1.0 billion aggregate principal amount of 10.000% senior secured second lien notes due 2022 at an issue price of 97.566% of principal amount.

Peabody plans to use the net proceeds from the sale of the notes to fund the tender offer to purchase for cash any and all of the $650 million aggregate principal amount outstanding of its 7 3/8% Senior Notes due 2016, to fund the redemption or satisfaction and discharge of all 2016 notes that are not tendered in the tender offer and for general corporate purposes, which may include the payment of its federal coal lease expenditures.

The closing of the sale of the notes is expected to occur on or about March 16.