Peabody Energy Corporation · NYSE:BTU
Peabody Energy — Debt Investor Presentation (December 2020)
21 slides from Peabody Energy's debt investor presentation, Dec 24, 2020
Slide 1: Capital Structure Extension Transaction
Capital Structure Extension Transaction December 24, 2020
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 I. Executive Summary II. Wilpinjong Overview III. Transaction Details IV. Key Contacts 3
Slide 4: I. Executive Summary
I. 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
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,
Slide 7: Executive Summary (cont’d) - Key Transaction Highlights
Executive Summary (cont’d) Key Transaction Highlights •1 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 fully capture the operational improvements that cont
Slide 8: Executive Summary (cont’d) - Summary Transaction Description
Executive Summary (cont’d) Summary Transaction Description • RCF Lenders exchanging $540 million of RCF commitments will receive: − (i) $206 million of New Structurally Senior Term Loans issued by PIC AU Holdings LLC (“AU Holdings LLC”) and PIC AU Holdings Corporation (“AU Holdings Corp”) RCF − (ii)
Slide 9: II. Wilpinjong Overview
II. Wilpinjong Overview
Slide 10: Overview of Wilpinjong
Overview of Wilpinjong ($ in millions) Mine Overview Operational and Financial Summary • 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 Export Tons Domestic Tons − Highly-efficient dozer
Slide 11: Australian Thermal Coal Cost Curve
Australian Thermal Coal Cost Curve (tons in millions) 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
Slide 12: III. Transaction Details
III. Transaction Details
Slide 13: Sources & Uses and Pro Forma Capitalization
Sources & Uses and Pro Forma Capitalization Set forth below are the estimated sources and uses and pro forma capitalization for the Transaction • Assumes 100% participation of 2022 Noteholders in the 2022 Notes Exchange Sources and Uses Selected Commentary Sources Uses • RCF Lenders exchange $540 mi
Slide 14: Pro Forma Corporate Structure
Pro Forma Corporate Structure New RemainCo Debt $233 million New Peabody 2024 Notes1 $324 million RemainCo L/C Facility Peabody Energy Corporation Existing RemainCo Debt $389 million First Lien Term Loan due 2025 Unrestricted entities under Peabody $500 million 6.375% Senior Notes due 2025 RemainCo
Slide 15: RCF / 2022 Notes Exchange Offer Key Terms
RCF / 2022 Notes Exchange Offer Key Terms • RCF Lenders exchanging $540 million of RCF commitments will receive: RCF Exchange − (i) $206 million of New Structurally Senior Term Loans issued by AU Holdings LLC and AU Holdings Corp Exchange Offer − (ii) $324 million New RemainCo L/C Facility issued by
Slide 16: New Structurally Senior Debt Key Terms
New Structurally Senior Debt Key Terms Issuers • AU Holdings LLC (“Co-Issuers”) • AU Holdings Corp • Upon the occurrence of certain conditions, holders of New Structurally Senior Notes and Term Loans will have the option to exchange an amount of such notes and term loans into New Peabody 2024 Notes
Slide 17: New RemainCo L/C Facility Key Terms
New RemainCo L/C Facility Key Terms Issuer • Peabody Energy Corporation (“PEC”) Guarantors • Substantially all domestic subsidiaries of PEC Maturity • December 31, 2024 Prefunded • Interest Rate: 6.0% fixed per annum, payable quarterly in cash1 Synth. L/C Facility Fees • Fronting Fee: 12.5bps per an
Slide 18: New Peabody 2024 Notes Key Terms
New Peabody 2024 Notes Key Terms Issuer • Peabody Energy Corporation (“PEC”) Maturity • December 31, 2024 • Cash Interest Rate: 6.00% per annum, payable semi-annually Interest Rate • PIK Interest Rate: 2.50% per annum, payable semi-annually Additional • Second lien on equity held by AU Holdings LLC
Slide 19: Exchange Offer Timeline
Exchange Offer Timeline December 2020 January 2021 S M T W T F S S M T W T F S 29 30 1 2 3 4 5 27 28 29 30 31 1 2 6 7 8 9 10 11 12 3 4 5 6 7 8 9 13 14 15 16 17 18 19 10 11 12 13 14 15 16 20 21 22 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 31 1 2 24 25 26 27 28 29 30 3 4 5 6 7 8 9 31 1 2 3 4 5 6 Ke
Slide 20: IV. Key Contacts
IV. Key Contacts
Slide 21: Key Contacts
Key Contacts • Please direct all Exchange Transaction questions to: Tyler Cowan Adam Green Key Dealer Managing Director Vice President Manager Contacts Lazard Lazard Tyler.Cowan@lazard.com Adam.Green@lazard.com +1 (312) 407-6657 +1 (312) 407-6654 21
Peabody Energy — Debt Investor Presentation (December 2020) on 6ix