Peabody Announces Agreement To Repurchase $300 Million In BTU Shares Directly From Entities Advised By Elliott Management
ST. LOUIS, Aug. 15, 2018 /PRNewswire/ -- Peabody (NYSE: BTU) today announced that it has signed a definitive agreement to repurchase $300 million of Peabody common stock directly from entities advised by Elliott Management at a price of $41.82 per share, representing a 1.7 percent discount from the closing price on Aug. 13, 2018. The repurchase represents 5.9 percent of the company's shares outstanding and is being made under Peabody's $1 billion authorized repurchase program. Repurchases now total $875 million since the company's shareholder return program was initiated in August 2017. Closing is expected on or about Aug. 21, 2018, subject to customary conditions.
"Peabody continues to generate substantial earnings, convert those earnings into cash in significant quantities and return cash to shareholders through a robust and expanded capital returns program," said Peabody President and Chief Executive Officer Glenn Kellow. "This repurchase represents another key milestone in our shareholder returns, and the buyback has the benefits of being accretive to shareholders while maintaining our strong financial position."
In the past month, Peabody has increased its dividend per share, completed a bond indenture amendment process to accommodate greater shareholder returns, and brought its total shares repurchased in the past year to 22.8 million shares, representing nearly 17 percent of fully converted shares outstanding in August 2017.
Peabody (NYSE: BTU) is the leading global pure-play coal company and a member of the Fortune 500, serving power and steel customers in more than 25 countries on six continents. Peabody offers significant scale, high-quality assets, and diversity in geography and products. Peabody is guided by seven core values: safety, sustainability, leadership, customer focus, integrity, excellence and people. For further information, visit PeabodyEnergy.com.
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