September 18, 2017 - Peabody (NYSE: BTU) announced today that it successfully completed an amendment of its Senior Secured Term Loan to lower the interest rate and modify terms to provide additional financial and operational flexibility, including for share repurchases and dividends.  

"Today's announcement reflects yet another positive step in further strengthening our capital structure and executing on the priorities we outlined in August," said Executive Vice President and Chief Financial Officer Amy Schwetz.  "Building on our recent 15 percent voluntary reduction in debt, this amendment further reduces fixed charges and provides greater financial flexibility to execute share repurchases and pay dividends in line with our previously announced capital return initiatives."

The company's Senior Secured Term Loan will now bear interest at a rate of LIBOR plus 3.50 percent, with a LIBOR floor of 1.00 percent, reflecting a reduction of 1.00 percent.  Certain terms were also modified, including the addition of a $450 million restricted payments basket to be utilized for payments of cash dividends, purchases of the company's stock or similar distributions, among other items.    

Together, the impact of the interest rate reduction and $300 million voluntary debt repayments Peabody completed in the third quarter are expected to reduce annual cash interest expense by approximately $23 million on a pro forma basis. 

Peabody is the world's largest private-sector coal company.  The company is also a leading voice in advocating for sustainable mining, energy access and clean coal technologies.  Peabody serves metallurgical and thermal coal customers in more than 25 countries on five continents.