Peabody Energy Plans $1.5 Billion Debt Sale to Pay Creditors

Peabody Energy Corp., the bankrupt mining company, plans to sell as much as $1 billion of secured bonds in connection with its restructuring plan.

The company said in a Feb. 1 statement it will sell five-year notes secured by its assets to pay back creditors. Proceeds will be released to creditors from an escrow account if the reorganization plan is confirmed on or before Aug. 1.

Peabody will market the bond deal to investors between Feb. 2 and Feb. 8, according to a person familiar with the matter, who asked not to be named because the deal is private. Goldman ...