Peabody Lenders Said to Limit Future Borrowings After Bond Deal
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Peabody Energy Corp.’s borrowing ability is being capped by lenders who are extracting concessions in return for allowing the company to raise $1 billion in the bond market.
The most indebted coal producer changed terms on its proposed second-lien notes, which would have allowed it to issue another $1 billion of junior-ranking debt, according to three people with knowledge of the matter. That limit has been halved, said the people who asked not to be identified because the information isn’t public. Peabody may borrow $500 million in addition to that if it’s successful in raising $250 million in equity, the people said.