S&P ups Peabody Energy loan, notes

S&P said it raised Peabody Energy Corp.’s senior secured loan to CCC+ from D and letter of credit facility to CCC+ from CC. The agency also upgraded the 6% senior unsecured notes to CCC- from D. The recovery rating remains unchanged at 0. Concurrently, S&P flipped the outlook to positive from negative.

The secured debt upgrade reflects the reduced risk of distressed exchanges and better recovery prospects for first-lien debt following debt reduction and refinancing of secured debt with unsecured notes. S&P also revised the recovery rating on the unsecured notes to 3 from 5.

Peabody delivered stronger-than-expected cash flows in fiscal 2021 on the back of higher price realizations and robust demand across all segments, leading to a forecast for continued improvement in financial performance and credit metrics in 2022, S&P said.

The positive outlook indicates the potential for an upgrade within the next 12 months.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.