Peabody extinguishes another $150m debt

VANCOUVER (miningweekly.com) – US coal major Peabody Energy has notified lenders that it will repay a further $150-million of its senior secured term loan, bringing total debt repaid in the third quarter to $300-million.

The St Louis, Missouri-based miner also said it was seeking amendments to accommodate a repricing of the company's senior secured term loan, which will total $647.6-million after the prepayment.

The company will also modify terms to provide further flexibility for share repurchases and dividends, in line with the company's capital return targets, along with other potential changes.  

Peabody advised that there was no assurance that it would be successful in amending the terms of its term loan, including its repricing and that any amendments are subject to market and other customary conditions.