BTU · Peabody Energy Corporation

On June 12, 2026, Peabody executed two new Australian surety bond facilities totaling A$700 million (A$400 million with Liberty Mutual and A$300 million with Swiss Re) to support its Australian mining reclamation obligations. These facilities are asset-backed and replace previous 100% cash-collateralized bank guarantee programs, significantly reducing the company's cash collateral requirements. Concurrently, Peabody terminated its 2020 Transaction Support Agreement (TSA) with its U.S. surety providers, which had imposed a minimum liquidity covenant and required substantial collateral. The termination releases that collateral and eliminates the covenant, improving liquidity. To accommodate the new Australian facilities, Peabody also entered into Amendment No. 2 to its existing revolving credit agreement with PNC Bank and other lenders. In a press release, CFO Mark Spurbeck noted that these transactions, alongside the recent refinancing of the 2028 convertible notes, enhance Peabody's financial strength and flexibility, supporting its strategy of balance sheet strength, disciplined capital allocation, and shareholder returns. For investors, the key implications are lower collateral drag, increased financial flexibility, and removal of a restrictive liquidity covenant, all of which strengthen Peabody's ability to manage through the coal cycle and allocate capital.