Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Debt Investor Presentation (December 2020)
21 slides from Peabody Energy's debt investor presentation, Dec 28, 2020
Slide 1: Capital Structure Extension Transaction
Capital Structure Extension Transaction December 24, 2020 Exhibit 99.7
Slide 2: Legal Disclaimer
Legal Disclaimer Important Information This presentation is strictly confidential and has been prepared by Peabody Energy Corporation (“Peabody” or the “Company”) solely for informational purposes. Recipients of this presentation may not reproduce, disclose or otherwise redistribute, in whole or in
Slide 3: Table of Contents
Table of Contents Executive Summary Wilpinjong Overview Transaction Details Key Contacts
Slide 4: Executive Summary
lL. Executive Summary
Slide 5: Executive Summary
Executive Summary Peabody Energy Corporation (“Peabody” or the “Company”) has entered into a Transaction Support Agreement (“TSA”) with certain of its creditors that provides for maturity extension and covenant relief, while maintaining sufficient operating liquidity and financial flexibility The tr
Slide 6: Executive Summary (cont'd)
Executive Summary (cont’d) The Transaction is supported by all RCF Lenders and approximately 65% of the 2022 Noteholders, who have executed a TSA with Peabody obligating them to participate in the RCF Exchange and 2022 Notes Exchange The 2022 Notes Exchange was formally launched on December 24, 2020
Slide 7: Key Transaction Highlights
Executive Summary (cont’d) Key Transaction Highlights Extended Maturities and Improved Financial Flexibility Removes all funded debt maturities before December 2024, providing Peabody with the benefit of time to enable a market recovery in both pricing and demand, as well as time for the Company to
Slide 8: Summary Transaction Description
Executive Summary (cont’d) Summary Transaction Description Exchange Summary RCF Exchange RCF Lenders exchanging $540 million of RCF commitments will receive: (i) $206 million of New Structurally Senior Term Loans issued by PIC AU Holdings LLC (“AU Holdings LLC”) and PIC AU Holdings Corporation (“AU
Slide 9: Wilpinjong Overview
II. Wilpinjong Overview
Slide 10: Overview of Wilpinjong
Overview of Wilpinjong ($ in millions) Mine Overview Wilpinjong is a leading thermal coal surface mine with historical and projected stable cash flows and low-cost operations, located in New South Wales, Australia Highly-efficient dozer/casting and truck and shovel operation among the largest coal m
Slide 11: Australian Thermal Coal Cost Curve
Australian Thermal Coal Cost Curve Wilpinjong is a premier seaborne thermal coal mine (with significant domestic sales) currently positioned in the 1st decile of the Australian thermal coal cost curve Australian Thermal Coal Cost Curve — Total Cash (USD/st, includes transportation costs) Wilpinjong
Slide 12: Transaction Details
III.Transaction Details
Slide 13: Sources & Uses and Pro Forma Capitalization
RCF Lenders exchange $540 million RCF commitments for: $206 million of New Structurally Senior Term Loan issued by AU Holdings LLC and AU Holdings Corp $324 million L/C Facility issued by PEC due December 2024 $10 million of cash $459 million of 2022 Notes exchange for: $194 million of New Structura
Slide 14: Pro Forma Corporate Structure
Pro Forma Corporate Structure Peabody Energy Corporation Peabody Investments Corp. Peabody Investments (Gibraltar) Limited Peabody Energy (Gibraltar) Limited Peabody Australia Holdco Pty Ltd Peabody International (Gibraltar) Limited Peabody Holland B.V. Peabody Energy Australia Pty Ltd Peabody Energ
Slide 15: RCF / 2022 Notes Exchange Offer Key Terms
RCF / 2022 Notes Exchange Offer Key Terms RCF Exchange Exchange Offer RCF Lenders exchanging $540 million of RCF commitments will receive: (i) $206 million of New Structurally Senior Term Loans issued by AU Holdings LLC and AU Holdings Corp (ii) $324 million New RemainCo L/C Facility issued by PEC,
Slide 16: New Structurally Senior Debt Key Terms
New Structurally Senior Debt Key Terms New Structurally Senior Term Loans / New Structurally Senior Notes Issuers (“Co-Issuers”) AU Holdings LLC AU Holdings Corp Exchange Option Upon the occurrence of certain conditions, holders of New Structurally Senior Notes and Term Loans will have the option to
Slide 17: New RemainCo L/C Facility Key Terms
New RemainCo L/C Facility Key Terms Drawn amounts of the New RemainCo L/C Facility shall receive interest of L+600bps per annum (no LIBOR floor), payable quarterly in cash. To be provided equally to existing First Lien Term Loan due March 2025 and 6.375% Senior Secured Notes due March 2025; parity t
Slide 18: New Peabody 2024 Notes
New Peabody 2024 Notes Issuer Peabody Energy Corporation (“PEC”) Maturity December 31, 2024 Interest Rate Cash Interest Rate: 6.00% per annum, payable semi-annually PIK Interest Rate: 2.50% per annum, payable semi-annually Additional Collateral Second lien on equity held by AU Holdings LLC securing
Slide 19: Exchange Offer Timeline
Exchange Offer Timeline Date Key Events December 24th Transaction announcement January 8th Early tender deadline at 5:00pm ET for cash early tender consideration/fee January 25th Exchange Offer Expiration Date January 29th Estimated Transaction closing January 2021 S M T W T F S 27 28 29 30 31 1 2 3
Slide 20: Key Contacts
IV.Key Contacts
Slide 21: Key Contacts
Key Contacts Tyler Cowan Managing Director Lazard Tyler.Cowan@lazard.com +1 (312) 407-6657 Adam Green Vice President Lazard Adam.Green@lazard.com +1 (312) 407-6654 Key Dealer Manager Contacts Please direct all Exchange Transaction questions to:
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