Peabody holds off private debt refinancing of $2.1bn loan
Jefferies earlier this year marketed a new loan to regional private credit firms to help refinance a $2.1bn bridge loan for Peabody’s takeover of Anglo’s steel coal assets.
Coal mining company Peabody Energy has held off seeking a $500-million private debt, which would help refinance an acquisition loan after the planned deal was put under review, according to people familiar with the matter.
Financial firm Jefferies Group earlier this year was marketing the new loan — which would partially refinance a $2.1-billion bridge facility backing Peabody’s takeover of Anglo American’s steel-making coal business — to regional private credit firms, said the people, who asked not to be named discussing private matters. The US miner was also said to be planning a $800-million bond to refinance the remaining loan, they added.
Peabody said in a press release last November that the company had planned to refinance the bridge loan before the acquisition was slated to close in the first half of this year. Lenders of that borrowing included Jefferies, Deutsche Bank, KKR Capital Markets and KKR Corporate Lending, the release said.
Representatives from Peabody and Jefferies declined to comment.
Peabody last week said it’s reviewing the deal worth up to $3.78-billion to buy Anglo’s coal portfolio after workers at Queensland’s Moranbah North Mine had to be evacuated due to a fire. It was the second such event since Anglo began shopping around its lucrative coal portfolio. Both parties remain in talks, it said in a statement last Tuesday.
Private credit has emerged as a financing alternative as traditional banks retreat from funding projects that may trigger environmental, social and governance risks.
Indian conglomerate Adani Group earlier this year signed an around A$330-million ($207-million) private debt for its coal port unit located in Australia’s Northern Queensland, while Australian miner Whitehaven Coal last year secured a $1.1-billion loan from 17 private credit firms and one bank for the purchase of two mines from BHP Group .
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