Peabody to redeem 3.25% convertible notes due 2028

Peabody (NYSE: BTU) announced it will redeem all outstanding 3.250% Convertible Senior Notes due 2028, with a redemption date set for November 18, 2026.

The notes will be redeemed at 100% of their principal amount, plus accrued and unpaid interest up to, but excluding, the redemption date. Upon completion, no notes will remain outstanding.

Holders may convert their notes at any time through the close of business on November 16, 2026, the second business day before the redemption date. Peabody said it expects holders of substantially all notes to convert before the redemption date, though conversion is not obligatory.

The conversion rate at the time of the announcement was 52.8309 shares of Peabody common stock per $1,000 principal amount of notes. Because the redemption qualifies as a "make-whole fundamental change" under the governing indenture, the conversion rate increases by 2.0971 shares, bringing the applicable rate to 54.928 shares per $1,000 principal amount for conversions made through November 16, 2026.

Peabody has elected cash settlement for any conversions. The company will settle conversion obligations by paying, for each $1,000 principal amount converted, the sum of daily conversion values across 40 consecutive trading days during the relevant observation period.

Wilmington Trust, National Association is serving as trustee, paying agent, and conversion agent under the indenture.

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