Peabody issues $250M convertible notes at 0.50%, refinances higher-cost 2028 debt

Filed June 2, 2026 · Period ending May 28, 2026 · ~2 min read

Key Changes

• high

  Peabody completed a $250M private offering of convertible notes due 2031 at 0.50% interest, convertible at $38.32/share (32.5% premium to May 28 stock price of $28.92). Notes mature June 1, 2031 with semi-annual interest payments.

  Item 1.01 verify on EDGAR →
• high

  Company will use $243.3M net proceeds plus cash to repurchase $241.2M principal of existing 3.25% 2028 notes for $388.8M total, refinancing at lower rates while extending maturity by 3 years. Remaining $16.7M funds anti-dilution hedges.

  Item 1.01 verify on EDGAR →
• medium

  Peabody entered capped call transactions costing $16.7M to reduce dilution from conversions before May 2030, with cap price at $50.61/share (75% premium). This protects existing shareholders if stock rises but limits hedge benefit above cap.

  Item 1.01 verify on EDGAR →