Peabody Energy received final approval from the U.S. Bankruptcy Court for the Eastern District of Missouri for its $800 million Debtor-in-Possession (DIP) financing facility. The approval, provides Peabody with access to capital to ensure the company can continue operating its business during the Chapter 11 process. The financing by a lender group, includes a $500 million term loan, a $200 million bonding accommodation facility, and a cash-collateralized $100 million letter of credit facility.
The court also granted final orders approving several other motions, including the planned sale of the company’s 5.06% interest in the Prairie State Energy Campus. Once the court granted its approval, Peabody announced it would sell its stake in Prairie State to the Wabash Valley Power Association for $57 million, subject to certain customary post-closing adjustments. Prairie State is a 1,600megawatt coal-fired electricity generation plant and adjacent coal mine in Illinois, and the plant commenced operations in 2012. It’s among the cleanest coal-fired plants in the nation.