Peabody Bonds Plunge as Coal Miner Grapples With Low Prices
This article is for subscribers only.
Two months after Peabody Energy Corp. raised $1 billion from the junk-bond market, buyers have lost 18 percent in market value as a slump in coal prices worsened.
The company’s $1 billion of 10 percent securities sold in March slid below 80 cents on the dollar in trading Tuesday to yield 15 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt was sold at 97.6 cents in March after lenders insisted on additional protection by placing conditions on the company’s future borrowings.