Peabody Energy (BTU) said late Thursday it priced a private offering of $225 million in 0.50% convertible senior notes due 2031.
The company said it also gave initial purchasers an option to buy up to an additional $25 million of notes.
The notes carry an initial conversion price of about $38.32 per share, the company said.
Peabody said it plans to use about $15 million of the proceeds for capped call transactions aimed at limiting shareholder dilution.
The rest of the proceeds, along with cash on hand, will fund the repurchase of about $241.2 million of its outstanding 3.250% convertible senior notes due 2028 for roughly $388.8 million in cash, it addd.
The offering is expected to close on Tuesday.