Peabody Energy Corp. reached an agreement with shareholders that would allow the company to avoid issuing new shares or warrants to pay off debt. The bonds issued in 2006 contain a clause that would prevent them from being leveraged for cash.
In a report last month, Bloomberg stated that the St. Louis-based company was nearing that threshold, at nearly $732.5 million in debt. Because shareholders agreed to waive specific requirements, Peabody will not have to issue preferred shares or warrants, which would have diluted existing stockholders.
Read more from the St. Louis Post-Dispatch
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