SALEM – A Peabody man police say they caught peddling narcotics last month on Lowell Street for a second time was indicted Friday by an Essex County grand jury.Ray Quiles, 25, of 15 Crane Ave., Peabody, is charged with distribution of a Class B substance, (suboxone) with the intent to distribute, subsequent offense.Peabody Police said on July 12 they observed him distribute suboxone to at the corner of Lowell and Bourbon streets.Because Quiles was previously convicted of drug distribution in January 2004 he faces a mandatory punishment of five years in state prison, with no chance of early release, if convicted.Assistant District Attorney Greg A. Friedholm is assigned to prosecute the case for the state.An indictment is a legal process that allows a case to be transferred from District Court to Superior Court, allowing for a more severe punishment. It is not an indication of guilt.