Wednesday, August 26, 2015

"Peabody Said to Hire Lazard as Adviser for Debt Restructuring" $BTU

From Bloomberg:

"Peabody Energy Corp. hired Lazard Ltd. to advise the coal miner how to restructure its $6.3 billion of debt, according to two people with knowledge of the matter. The largest U.S. coal producer, which is suffering from a collapse in demand for the commodity, is talking to creditors about ways to cut its debt load, including swapping obligations for new shares or convertible notes..."
Most recent trade on the "sub-fulcrum" 4.75% notes was 12, which makes for a current yield of 39.6%.


Anonymous said...

“While Peabody has a stated goal of deleveraging over time, we won’t comment on speculation regarding specific strategies”

Gosh, are they going to delever using huge profits to pay down debt? Or do they need to crush the stock with a massive dilution in order to delever? I wonder!

Anonymous said...

Strong last few days for coal stocks (BTU, ACI)

Feels like these are leading the dead cat bounce