Moody’s rates Peabody loan, notes Ba3

Moody's Investors Service said it assigned new ratings to Peabody Energy Corp., including a corporate family rating of provisional B1, a provisional Ba3 rating on $500 million first-lien secured term loan and a provisional Ba3 rating on $1 billion first-lien secured notes to be issued by the Peabody Securities Finance Corp.

The outlook is stable.

The proposed debt offering will be used to repay existing first-lien debt as part of the exit financing and pay related fees and expenses.

The provisional ratings are assigned pending the emergence from bankruptcy and the closing of the proposed exit financing. The company is expected to emerge from bankruptcy in the next few months.

Upon emergence, Peabody Securities Finance will be merged into Peabody Energy, which will assume the obligations under the notes. To the extent that the proposed transaction does not close, the notes will be repaid from the escrow account, Moody’s said.

On Jan. 26, the company announced that the U.S. Bankruptcy Court for the Eastern District of Missouri approved the company's disclosure statement, enabling the company to solicit its creditors to vote on the proposed plan of reorganization.

© 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.