Two Coal Miners Getting a Long Overdue Breather Today Confirming Hedge Funds’ Bullish Sentiment

Peabody’s restructuring decision  involves exchanging $5.1 billion of debt obligations while diluting the assets of the backers. About $1.17 billion debt is held as first-lien term loan. Peabody Energy Corporation (NYSE:BTU)’s debt problems grew after the $5.1 billion acquisition of Macarthur Coal Ltd. in 2011. Owing to the slumping coal prices Peabody has reported consecutive losses since the third quarter of 2013. This has also resulted in a sharp slide of the company’s second-lien bonds maturing in March 2022.

Hedgies also made the right call on Peabody Energy Corporation (NYSE:BTU) judging by their enthusiasm during the second quarter as a total of 27 funds held stakes with an aggregate value of $142.06 million in the company at the end of June as compared to 19 funds with $225.96 million in shares a quarter earlier. The decline of the total value of holdings was due to the 70% slump of the stock during the quarter, while hedge funds still amassed over 23% of the company at the end of June. Among these investors, Dimitry Balyasny’s Balyasny Asset Management held the largest stake in Peabody among the company’s investors that we track, owning some 18.4 million shares valued at $40.30 million, David Shaw’s D.E. Shaw was the most bullish among top ten stockholders disclosing a stake of about 1.75 million shares valued at $3.84 million in its latest 13F.

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