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How Peabody’s New A$700 Million Surety Facilities Will Impact Peabody Energy (BTU) Investors
Peabody Energy’s Australian subsidiaries recently entered into new A$700,000,000 asset-backed surety bond facilities with Liberty Mutual and Swiss Re, replacing existing 100% cash-collateralised bonding programs and backed by substantially all of the obligors’ assets through 2031.
By freeing up cash previously tied to reclamation guarantees and amending its revolving credit facility to support the new structure, Peabody is reshaping how it funds long-term mine rehabilitation obligations in...