Peabody announced that it has completed its previously announced exchange transaction following the tender of 86.86% of its senior secured notes due 2022. The closing of this transaction extends a substantial portion of Peabody's debt maturities to December 2024, eliminates its net leverage ratio covenant and finalizes a four-year standstill with its surety bond providers. 2022 Notes Exchange Offer and Consent Solicitation: $398.7 million of former 2022 senior secured notes were tendered by 2022 noteholders and exchanged for $195.1 million of new 8.5 percent 2024 senior secured notes issued by Peabody, $193.9 million of new 10.0 percent 2024 senior secured notes issued by certain subsidiaries of Peabody that indirectly own the company's Wilpinjong mine and $13.4 million in additional cash consideration, plus accrued and unpaid interest. Approximately 13%, or $60.3 million, of the 2022 notes did not participate in the exchange offer, leaving those notes as Peabody's only funded debt currently maturing prior to December 2024. Given the level of support for the exchange offer, the amendments to the indenture governing the 2022 notes are now operative. As a result, the 2022 notes are unsecured and will no longer have the benefit of substantially all of the restrictive covenants. The 2022 notes will continue to bear interest at an annual rate of 6.0% and mature in March 2022. In connection with the exchange, Peabody has agreed to commence by February 13, 2021 an offer to purchase up to $22.5 million in aggregate accreted value of the new Peabody 2024 notes at a purchase price equal to 80% of the accreted value of the new 2024 notes, plus accrued and unpaid interest, if any, to, but excluding the redemption date for the offer to purchase. Revolving Credit Facility Lender Exchange: Peabody also exchanged $540 million of revolving credit facility commitments with its revolving lenders for $206.0 million of new structurally senior term loans under a credit agreement between the lenders and certain subsidiaries of Peabody that indirectly own the company's Wilpinjong mine, a new $324.0 million senior secured letter of credit facility between the lenders and Peabody, $10.0 million of cash consideration and 100 basis points of exchange fees. Following this exchange with Peabody's revolving lenders, the first lien net leverage ratio covenant under the company's existing credit agreement has been eliminated. Lazard served as financial advisor and Jones Day served as legal advisor to Peabody on this transaction.