Shares of coal producer Peabody Energy (NYSE: BTU) jumped as much as 22% in trading on Monday after the company finalized an agreement with debtholders. At 2:50 p.m. EDT today, shares were near their highs of the day and showed no signs of stopping.
An agreement announced on Thursday finalizes a proposed deal from Dec. 24. The deal extends the maturity of senior secured notes due in 2022 to a 2024 maturity date. The company’s revolving credit facility was also extended to December 2024. Part of the agreement also eliminates some covenants that management thought could restrict its flexibility.