By Stephanie N. Rotondo
Phoenix, Jan. 13 – CHS Inc. sold $450 million of 7.5% class B series 4 cumulative redeemable preferred stock, according to a market source on Tuesday.
BofA Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunning managers.
Dividends will be payable on a quarterly basis. The preferreds become redeemable on or after Jan. 21, 2025 at par plus accrued dividends.
Upon a change of control, holders can require the company to redeem the issue at par plus accrued dividends.
Proceeds will be used to partially fund the planed construction of a nitrogen fertilizer manufacturing plant in Spiritwood, N.D.
CHS is an Inver Grove Heights, Minn.-based integrated agricultural company.
| Issuer: | CHS Inc.
|
| Securities: | Class B series 4 cumulative redeemable preferred stock
|
| Amount: | $450 million, or 18 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Dividend: | 7.5%
|
| Price: | Par of $25.00
|
| Yield: | 7.5%
|
| Talk: | 7.5% to 7.625%
|
| Call options: | On or after Jan. 21, 2025 or within 90 days of a change of control at par plus accrued dividends
|
| Pricing date: | Jan. 13
|
| Settlement date: | Jan. 21
|
| Expected listing: | Nasdaq: CHSCL
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