Peabody Says Secondary Offering By Certain Selling Stockholders Has Been Priced

(RTTNews) - Peabody Energy Corp. (BTU) announced Friday that the underwritten secondary offering of 12.8 million shares of its common stock by certain of its existing stockholders affiliated with Discovery Capital Management, LLC has been priced.

Peabody has agreed to repurchase from the underwriter a number of these shares having an aggregate value of approximately $40 million.

The selling stockholders will receive all of the net proceeds from the offering. Peabody is not offering any shares in the offering and will not receive any proceeds from the sale.

Also, none of Peabody's officers or directors are selling any shares in the offering.

The shares being offered were previously issued by Peabody in connection with its emergence from Chapter 11 on April 3 and subsequent conversions of preferred stock.

Further, the company said its per-share purchase price for the repurchased shares will be the same as the per-share purchase price payable by the underwriter to the selling stockholders. Peabody expects to fund the share repurchase with cash on hand.

The offering and share repurchase are expected to close on August 23, subject to the satisfaction of customary closing conditions.

Credit Suisse is acting as the sole underwriter of the offering.