Peabody Energy Corporation has announced an adjustment to the Conversion Rate of its 3.250% Convertible Senior Notes due 2028. The Conversion Rate, previously 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, which took effect immediately after 9:00 a.m., New York City time, on February 19, 2025, represents an increase of at least 1% from the previous Conversion Rate.
The adjustment to the Conversion Rate is a result of the declaration of quarterly cash dividends by the company. The board of directors declared a quarterly cash dividend payment of $0.075 per share on the Company’s common stock, with previous dividends of the same amount being paid on December 4, 2024, September 4, 2024, and June 5, 2024.
This adjustment reflects the impact of the dividend payments on the Conversion Rate, and it is in line with the provisions outlined in the Indenture governing the issuance of the Notes.
Investors holding the 3.250% Convertible Senior Notes due 2028 are advised to take note of this adjustment. Following these announcements, the company's shares moved -3.0%, and are now trading at a price of $12.48. If you want to know more, read the company's complete 8-K report here.
