Peabody Replaces Surety Agreements For U.S., Australia Reclamation Obligations

(RTTNews) - Peabody Energy Corp (BTU) on Monday said it has terminated its 2020 Transaction Support Agreement with surety providers and entered into new indemnification agreements to support its U.S. mine reclamation obligations.

The company also established asset-backed surety facilities for its Australian reclamation obligations, replacing cash-backed bank guarantees and cash deposits previously held with regulators.

The coal miner said the changes are expected to reduce its reclamation collateral requirements and remove a minimum liquidity covenant.

"These changes, along with the successful recent refinancing of the company's 2028 convertible notes, continue to enhance Peabody's financial strength and flexibility," said Executive Vice President and Chief Financial Officer Mark Spurbeck. "The additional liquidity afforded by the new surety arrangements allows the company to continue its multi-pronged strategy of balance sheet strength, disciplined capital allocation, and shareholder returns."

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