Fitch Updates Peabody Energy Corp. Recovery Tool

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has published updated recovery analysis for Peabody Energy Corp., in line with the Feb. 12, 2016 downgrade of the company's IDR to 'CC' from 'CCC'.

Fitch has lowered its going-concern EBITDA from $980 million to $650 million to reflect long-term lower volumes in the U.S., reduced overhead, and break-even conditions in Australia. Peabody reported that for 2015, Australian mining adjusted EBITDA was $175.4 million (before hedging activity), U.S. mining adjusted EBITDA was $937.2 million, and consolidated adjusted EBITDA was $434.6 million.

Fitch has dropped its enterprise value multiple assumption from 5.5x to 4.5x given how much of the industry is distressed and the need for asset valuations to incorporate assumption of asset retirement obligations. Fitch notes that using a 4x multiple results in an enterprise value that is close to a liquidation value. Fitch has assumed a concession allowance at 5% of enterprise value to be spread among the second lien, unsecured and junior subordinated notes.

The interactive recovery analysis worksheets are available at 'www.fitchratings.com' under the following headers

Sectors >> Corporate Finance >> Corporates >> Research

Additional information is available at www.fitchratings.com

Peabody Energy Recovery Tools

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=878137

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View source version on businesswire.com: http://www.businesswire.com/news/home/20160304005843/en/

Fitch Ratings
Monica M. Bonar
Senior Director
+1-212-908-0579
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Gregory Fodell
Associate Director
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or
Media Relations
Alyssa Castelli, +1 212-908-0540
[email protected]

Source: Fitch Ratings

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