BTU 10 3/15/22 Corp

Peabody Energy Corp

Credit, Industrial/Transportation, Event Driven/Special Sit


Publicly traded companies mentioned herein: Peabody Energy Corporation (BTUUQ)

Highlights

The presenter is long Peabody Energy’s second lien bonds (BTU 10 3/15/22 Corp). Under reasonable, “if not conservative” assumptions he sees this issue worth par plus accrued interest, and that’s 40% up from where it trades today (mid 80s). While it’s true that the largest move in this issue is behind it (from the teens), the uplift to Peabody’s revenue from the spike in met coal prices following China’s production cut announcement is meaningful and he views the collateral as sufficient.

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Idea Discussion

Commentor 1 - 2 weeks ago

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