BUSINESS

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.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

Company signals intention to offer $225 million in convertible notes (initial announcement).
May 28, 2026: Peabody files/announces the proposed private offering under Rule 144A.
May 28, 2026: Pricing confirmed for $225 million of 0.50% convertible senior notes due 2031.
June 2, 2026: Offering settlement scheduled, subject to customary closing conditions.
Conversion restrictions apply before December 1, 2030; limited redemption allowed after June 5, 2029.

Why This Matters to You

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.

The Bottom Line

This is a strategic move by Peabody to raise funds, with a nod to future growth. But remember, conversion is restricted until December 2030. Worth forwarding if you know someone considering investing in Peabody.