Peabody Prices $225M Convertible Notes, Settles June 2
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ST. LOUIS — Peabody announced on May 28 that it priced $225 million of convertible senior notes due 2031 in a private offering to qualified institutional buyers, with an initial 0.50% interest rate and an option for initial purchasers to buy up to an additional $25 million; settlement is scheduled for June 2, 2026.
The notes carry an initial conversion rate of 26.0970 shares per $1,000 principal, implying an approximate $38.32 conversion price and about a 32.5% premium to recent volume-weighted average prices; Peabody’s market capitalization was reported at $3.54 billion, conversion is restricted before December 1, 2030, and limited redemption applies before June 5, 2029.
More context
Timeline
- 1. Company signals intention to offer $225 million in convertible notes (initial announcement).
- 2. May 28, 2026: Peabody files/announces the proposed private offering under Rule 144A.
- 3. May 28, 2026: Pricing confirmed for $225 million of 0.50% convertible senior notes due 2031.
- 4. June 2, 2026: Offering settlement scheduled, subject to customary closing conditions.
- 5. Conversion restrictions apply before December 1, 2030; limited redemption allowed after June 5, 2029.
Why it matters
Peabody's $225M convertible notes offering could impact the company's future financial stability. If you're an investor, this is a key move to watch. Check the terms carefully - note the initial 0.50% interest rate and the 32.5% premium to recent prices.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
