NYSE: BTU PEABODY ENERGY CORP 8-K

Peabody frees up cash with A$700M Australian surety facilities, terminates old agreements

Filed June 15, 2026 · Period ending June 9, 2026 · ~1 min read

Key Changes

high

Peabody established A$700M in new surety bond facilities with Liberty Mutual and Swiss Re to replace 100% cash-collateralized reclamation bonding programs, freeing up previously restricted cash for the Australian operations.

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Company terminated 2020-2022 surety agreements and related collateral security agreement after satisfying all obligations, reducing overall collateral pledged to surety providers and improving financial flexibility.

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New Australian facilities terminate June 2031 and are secured by substantially all assets of Australian subsidiaries, with standard covenants limiting debt, distributions, asset sales, and affiliate transactions.

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Peabody amended its revolving credit facility on June 9 to permit the Australian surety bond facilities and related liens on subsidiary assets.

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Summary

Peabody Energy completed a significant refinancing of its Australian reclamation bonding arrangements, establishing A$700 million in new surety facilities with Liberty Mutual and Swiss Re. The key benefit: these new facilities replace existing programs that required 100% cash collateral, freeing up capital that was previously locked up to guarantee mine reclamation obligations.

Simultaneously, the company terminated legacy surety agreements dating back to 2020-2022 after satisfying all obligations, further reducing collateral requirements. For retail investors, this represents improved financial flexibility and liquidity. Cash previously tied up as collateral can now be deployed for operations, debt reduction, or shareholder returns.

However, the new facilities do impose standard restrictive covenants on the Australian operations and are secured by substantially all Australian subsidiary assets, creating liens that rank ahead of unsecured creditors. Watch for Peabody's next quarterly report to see how the freed-up cash is deployed and whether the company provides specific figures on the collateral reduction achieved. The facilities run through June 2031, so this is a long-term structural improvement to the balance sheet.

Section-by-Section Diff

Event · Item 7.01 — Regulation FD Disclosure

~200 words

Peabody announced Australian Surety Bond Facilities and terminated the TSA, disclosed via press release under Regulation FD.

1 Added

Added Australian Surety Bond Facilities and TSA termination medium

Added in current filing · verify on EDGAR →

On June 15, 2026, the Company issued a press release announcing the Australian Surety Bond Facilities and the termination of the TSA.

Peabody disclosed the establishment of Australian Surety Bond Facilities and the termination of an agreement referred to as the TSA. The 8-K does not provide details on the nature, size, or terms of these facilities or the TSA itself, as the information is contained in a press release furnished as an exhibit. This is a Regulation FD disclosure, meaning material information is being publicly released to ensure fair access.

Event · Item 1.02 — Termination of a Material Definitive Agreement

~200 words

Item 1.02 — Termination of a Material Definitive Agreement filed; see Key Changes for terms.

3 Added

Added Termination of surety agreements medium

Added in current filing · verify on EDGAR →

On June 12, 2026, the Company terminated that certain Transaction Support Agreement and Surety Resolution Term Sheet, each dated as of November 6, 2020 (as amended, supplemented or otherwise modified to the date hereof, the “TSA”), by and among the Company, certain subsidiaries of the Company party thereto and certain providers of its surety program (collectively, the “Sureties”).

Peabody terminated its Transaction Support Agreement and Surety Resolution Term Sheet originally established in November 2020 with providers of its surety program. These agreements governed the company's surety bonding arrangements, which are typically used to guarantee reclamation and other obligations in the mining industry.

Added Termination of collateral security agreement medium

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on June 12, 2026, the Company terminated that certain Collateral Agency and Security Agreement, dated as of May 3, 2022 (as amended, supplemented or otherwise modified to the date hereof, the “TSA Security Agreement”), by and among the Company, certain subsidiaries of the Company party thereto, the Sureties party thereto and Bank of New York Mellon Trust Company, N.A., as collateral agent (the “TSA Collateral Agent”).

Peabody also terminated the related Collateral Agency and Security Agreement from May 2022 that governed collateral pledged to secure the surety arrangements. This agreement involved Bank of New York Mellon as collateral agent managing the pledged assets.

Added Satisfaction of obligations and collateral reduction high

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All obligations of the Company to the Sureties and the TSA Collateral Agent, as applicable, under the TSA and the TSA Security Agreement have been satisfied. The termination of the TSA allows for the overall reduction of collateral pledged to the Sureties.

Peabody has fully satisfied all obligations under both terminated agreements, allowing the company to reduce the amount of collateral it must pledge to surety providers. This frees up capital and assets that were previously restricted, potentially improving the company's financial flexibility and liquidity position.

Event · Item 1.01 — Entry into a Material Definitive Agreement

~700 words

Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.

2 Added

Added Australian Surety Bond Facilities covenants and security medium

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The Australian Surety Bond Facilities contain customary covenants that, among other things and subject to certain exceptions (including compliance with financial ratios), may limit the Australian Surety Bond Facility Obligors and their respective subsidiaries’ ability to incur additional financial indebtedness, make certain distributions or loans, sell or otherwise dispose of assets, enter into certain affiliate transactions, create or incur liens, and enter into mergers or other significant corporate transactions. The Australian Surety Bond Facilities are secured by substantially all of the assets of the Australian Surety Bond Facility Obligors.

The new surety bond facilities impose standard restrictive covenants on Peabody's Australian operations, limiting their ability to incur debt, make distributions, sell assets, and engage in affiliate transactions, subject to financial ratio compliance. The facilities are secured by substantially all Australian subsidiary assets, which creates a lien on those assets.

Added Revolving Credit Facility Amendment medium

Added in current filing · verify on EDGAR →

On June 9, 2026, the Company entered into that certain Amendment No. 2, dated as of June 9, 2026 (the “Revolving Credit Facility Amendment”), with PNC Bank, National Association, as administrative agent (the “Agent”), and the lenders party thereto (such lenders, the “Consenting Lenders”), which amends that certain Credit Agreement by and among the Company, as borrower, certain subsidiaries of the Company party thereto, the Agent and the lenders party thereto.

Peabody amended its existing revolving credit facility on June 9, 2026 to permit the Australian surety bond facilities, including allowing the Australian subsidiaries to incur the related indebtedness and liens. This was a necessary step to ensure the new surety bond arrangements don't violate existing credit agreement restrictions.