ST. LOUIS, Sept. 16, 2015 /PRNewswire/ -- Peabody Energy
(NYSE: BTU) today announced a 1-for-15 reverse stock split on
shares of the company's common stock. Authorization to
implement the reverse stock split was approved by Peabody
shareholders at a special meeting held earlier today.
"We thank our shareholders for their continued support as we
work through these challenging times," said President and Chief
Executive Officer Glenn
Kellow. "Peabody is advancing further initiatives
across our global platform with an intense focus on operational
excellence, lean organization, portfolio management and financial
strength."
The reverse stock split is expected to become effective at the
close of business on
Sept. 30, 2015 (the "effective
time"), which would result in Peabody's common stock to begin
trading on a split-adjusted basis at market open on Oct. 1, 2015. Upon completion of the
reverse stock split, every 15 shares of common stock owned by a
shareholder will be combined into one share of common stock, and
the number of outstanding shares will be reduced from approximately
278 million to approximately 19 million.
Peabody will not issue fractional shares in connection with the
reverse stock split. Shareholders who would otherwise
hold fractional shares following the reverse stock split will
receive cash (without interest and subject to applicable
withholding taxes) in lieu of such fractional shares. The sum
will be based on the net proceeds, after customary brokerage
commissions and other expenses, resulting from the transfer agent
aggregating and selling all fractional share interests into the
market. Such proceeds will be paid on a pro rata basis,
depending on the fractional amount of shares owned.
After the effective time, holders of certificated shares and
registered book-entry holders of common stock will be sent a
transmittal letter from Peabody's transfer agent, American Stock
Transfer and Trust Company (AST), regarding their stock
ownership. All questions regarding ownership should be
directed to AST at (800) 937-5449. Beneficial holders of
Peabody's common stock are encouraged to contact their bank,
broker, custodian or other nominee with questions regarding
procedures for processing the reverse stock split.
Peabody Energy is the world's largest private-sector coal
company and a global leader in sustainable mining, energy access
and clean coal solutions. The company serves metallurgical and
thermal coal customers in more than 25 countries on six continents.
For further information, visit PeabodyEnergy.com and
AdvancedEnergyForLife.com.
Certain statements in this press release are forward-looking as
defined in the Private Securities Litigation Reform Act of 1995.
The company uses words such as "anticipate," "believe," "expect,"
"may," "forecast," "project," "should," "estimate," "plan,"
"outlook," "target," "likely," "will," "to be," "provide," or other
similar words to identify forward-looking statements. These
forward-looking statements are based on numerous assumptions that
the company believes are reasonable, but they are open to a wide
range of uncertainties and business risks that may cause actual
results to differ materially from expectations as of Sept. 16, 2015. These factors are difficult
to accurately predict and may be beyond the company's control. The
company does not undertake to update its forward-looking
statements. Factors that could affect the company's results
include, but are not limited to: supply and demand for our coal
products; price volatility and customer procurement practices,
particularly in international seaborne products and in the
company's trading and brokerage businesses; impact of alternative
energy sources, including natural gas and renewables; global steel
demand and the downstream impact on metallurgical coal prices;
impact of weather and natural disasters on demand and production;
reductions and/or deferrals of purchases by major customers and
ability to renew sales contracts; credit and performance risks
associated with customers, suppliers, contract miners, co-shippers,
and trading, banks and other financial counterparties; geologic,
equipment, permitting, site access, operational risks and new
technologies related to mining; transportation availability,
performance and costs; availability, timing of delivery and costs
of key supplies, capital equipment or commodities such as diesel
fuel, steel, explosives and tires; impact of take-or-pay agreements
for rail and port commitments for the delivery of coal; successful
implementation of business strategies; negotiation of labor
contracts, employee relations and workforce availability; changes
in postretirement benefit and pension obligations and their related
funding requirements; replacement and development of coal reserves;
adequate liquidity, and the cost, availability, access to capital
and financial markets; ability to appropriately secure our
obligations for land reclamation, federal and state workers'
compensation, federal coal leases and other obligations related to
the company's operations, including its ability to remain eligible
for self-bonding and/or successfully access the commercial surety
market; effects of changes in interest rates and currency exchange
rates (primarily the Australian dollar); effects of acquisitions or
divestitures; economic strength and political stability of
countries in which the company has operations or serves customers;
legislation, regulations and court decisions or other government
actions, including, but not limited to, new environmental and mine
safety requirements; changes in income tax regulations,
sales-related royalties, or other regulatory taxes and changes in
derivative laws and regulations; litigation, including claims not
yet asserted; terrorist attacks or security threats, including
cybersecurity threats; impacts of pandemic illnesses; and other
risks detailed in the company's reports filed with the United
States Securities and Exchange Commission (SEC).
CONTACT:
Vic Svec
(314) 342-7768
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SOURCE Peabody Energy