The redemption price is set at 100% of the principal amount, plus any accrued and unpaid interest up to the redemption date. Holders retain the option to convert their notes into common stock before the deadline at 5:00 p.m. New York City time on November 16, 2026. Peabody anticipates that the majority of bondholders will choose to convert their holdings prior to the redemption date rather than accept the cash payout.
Peabody to Redeem All Outstanding 2028 Convertible Notes
Peabody is calling in its entire outstanding balance of 3.250% convertible senior notes due 2028, setting a redemption date of November 18, 2026. The move effectively triggers a final wind-down of this specific debt instrument, with the company opting for a full cash settlement for all converted holdings.
Because the redemption qualifies as a make-whole fundamental change under the indenture, the conversion rate has been adjusted upward to 54.928 shares of common stock per $1,000 principal amount of notes. Peabody has elected to fulfill all conversion obligations entirely in cash, utilizing a 40-day observation period to determine the daily conversion values. Wilmington Trust, National Association serves as the trustee and paying agent for the transaction.
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