Peabody Energy Corporation has announced an adjustment to the Conversion Rate for its 3.250% Convertible Senior Notes due 2028. The Conversion Rate, previously set at 51.0440 shares of Common Stock per $1,000 principal amount of Notes, has been increased to 51.7762 shares of Common Stock per $1,000 principal amount of Notes. This adjustment was made in accordance with Sections 5.05(A)(iv) and 5.05(C) of the Indenture as a result of the declaration of quarterly cash dividends.
The adjustment to the Conversion Rate was effective immediately after 9:00 a.m., New York City time, on February 19, 2025, the ex-dividend date for the Q1 2025 Dividend. This change constituted an increase of at least 1% of the Conversion Rate of 51.0440 shares of Common Stock per $1,000 principal amount of Notes in effect immediately prior to the adjustment resulting from the declaration of the dividends.
The company had previously declared dividends of $0.075 per share on December 4, 2024, September 4, 2024, and June 5, 2024, in addition to the Q1 2025 Dividend scheduled to be paid on March 11, 2025. If the Q1 2025 Dividend is not paid, the Conversion Rate shall be decreased to the Conversion Rate that would then be in effect if such dividend had not been declared.
Investors are encouraged to contact Investor Relations at 314-342-7900 for any questions regarding these adjustments. As a result of these announcements, the company's shares have moved -3.0% on the market, and are now trading at a price of $12.48. Check out the company's full 8-K submission here.
