CHS offers $17.38 million 7.875% cumulative redeemable preferreds

By Stephanie N. Rotondo

Seattle, March 30 – CHS Inc. is selling $17.38 million of its 7.875% class B series 1 cumulative redeemable preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Thursday.

The paper is being offered to non-individual “active patrons” who hold qualified capital equity certificates in an amount equal to or greater than $500.

The preferreds – which are listed on the Nasdaq Global Select Market under the ticker “CHSCO” – will be used to redeem about $20 million of “patrons’ equities” held in the form of qualified capital equity certificates.

The redemption price will be $28.74, calculated as the greater of $25.49, which is equal to par plus accrued dividends, and the closing share price as of March 21.

CHS will not receive any cash proceeds from the sale.

Dividends are payable quarterly. The preferreds become redeemable at par plus accrued dividends on or after Sept. 26, 2023.

Holders can force a redemption within 90 days of a change of control.

CHS is an Inver Grove Heights, Minn.-based integrated agricultural company.

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