Peabody lines up $2.1bn loan to buy Anglo’s coal business
Peabody Energy has obtained a $2.075-billion bridge loan from a mix of banks and private credit to back its acquisition of Anglo American’s steelmaking coal business.
The US miner plans to refinance the loan before the acquisition closes in the first half of next year, the company said in a public filing. Jefferies, Deutsche Bank, KKR Capital Markets and KKR Corporate Lending are providing the loan, according to the statement.
Private credit has emerged as a financing alternative to traditional lenders that have become reluctant to fund projects that may trigger environmental, social and governance risks. Australian coal miner Whitehaven Coal earlier this year secured a $1.1-billion loan from 17 private credit providers and one bank for the purchase of two mines from BHP Group.
Peabody agreed to acquire Anglo American’s coal operations in Australia’s Queensland state to expand into metallurgical coal production, used in the manufacture of steel. The company has separately inked a deal to sell a controlling interest in one of the mines to Indonesia’s PT Delta Dunia Makmur for $455-million.
Anglo American’s sale of its coal business in Australia is part of a restructuring strategy to fend off a $49-billion takeover offer from BHP Group earlier this year.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation