Coal company Peabody Energy Corp. (BTU) announced Monday that it plans to offer $2.75 billion of new senior unsecured debt, subject to market conditions, to help fund its purchase of interests in Australian coking-coal-mining company Macarthur Coal Ltd. (MCC.AU).

The two-part offering, comprising seven- and 10-year debt, will be marketed privately to qualified institutional buyers.

Peabody had used bridge financing to close on its controlling stake in Macarthur Coal shares with ArcelorMittal through a joint venture company, PEAMCoal Pty. Ltd.

St. Louis-based Peabody fuels 10% of U.S. power supply and 2% of the electricity worldwide, according to its website.

It posted $2.04 billion of revenue in the third quarter, up 9% over the prior-year period.

-By Katy Burne, Dow Jones Newswires; 212-416-3084; katy.burne@dowjones.com

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