Peabody Energy completes $250 million 0.50% convertible notes offering due 2031
Peabody completed a private offering of $250 million in 0.50% convertible senior notes due 2031 on June 2, 2026, with net proceeds of about $243.3 million. The company plans to use part of the proceeds, together with cash, to repurchase about $241.2 million of its 3.250% convertible notes due 2028 for about $388.8 million, which shifts its debt toward a lower-coupon instrument and adds dilution protection through capped call transactions.
Key points
- Notes total $250 million after initial purchasers exercised an option for an additional $25 million on May 29, 2026
- Initial conversion price is about $38.32 per share, a 32.5% premium to the $28.9197 volume weighted average price on May 28, 2026
- Company plans to repurchase about $241.2 million of 2028 notes for about $388.8 million total cash, using about $16.7 million of proceeds for capped calls
- Notes mature June 1, 2031 and bear 0.50% annual interest; the company may not redeem them before June 5, 2029
The filing
Written by AI on Nov 8, 2026, 1:55 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on June 02, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.