Analyst bullish on valuations after coal’s ‘comeback party’ was ‘hardly noticed’

摘要

An FBR & Co. analyst said the market has overlooked the “broad and bullish implications for the coal sector” of Peabody Energy Corp.’s nearly $2 billion debt deal. Analyst Lucas Pipes highlighted in a Feb. 16 note that as Peabody approaches emergence from a bankruptcy reorganization, the company’s term loan was upsized to $950 million from $500 million with a lower interest rate for its term loan and debt issues than expected. Pipes said the high cost of capital had pulled down coal company valuations and prevented any major mergers, acquisitions or longer-term strategic opportunities.