0854 GMT - There are concerns over how Peabody can afford to refinance its bridge loan for the acquisition of Anglo American's steelmaking coal business, RBC Capital Markets analysts write. Peabody shares have plummeted since the acquisition was announced and it has said it is reviewing the up to $3.78 billion deal. However, the agreement contained no break clause so it is unclear how Peabody could exit it, the analysts write. Anglo American might have to support Peabody by reducing the upfront capital needed to complete the acquisition, they write. Options include changing the payment structure, underwriting Peabody's debt or taking equity in the company. These aren't ideal but are better than restarting the sales process, they add. Anglo American shares trade down 1.21% at 2,073.50 pence. (adam.whittaker@wsj.com)
(END) Dow Jones Newswires
April 24, 2025 04:55 ET (08:55 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.