By Rebecca Melvin
New York, Feb. 21 - Post Holdings Inc. priced an upsized $210 million of 3.75% convertible perpetual preferred stock at a liquidation preference of $100 per share and an initial conversion premium of 25%, according to a syndicate source.
The Rule 144A offering of preferred shares, designated series B preferred stock, was initially going to be $175 million in size. The greenshoe was upsized to $31.5 million from $26.25 million.
Pricing came at the tight end of talk, which was for a 3.75% to 4.25% dividend and 20% to 25% initial conversion premium.
Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners of the offering.
The preferreds are non-callable until Feb. 15, 2018 and then are provisionally callable if the underlying shares exceed 130% of the conversion price.
There is takeover and dividend protection.
Proceeds will be used to repay a term loan with a principal balance of $168.4 million and for general corporate purposes, which could include financing acquisitions.
Post is a St. Louis-based cereal maker.
| Issuer: | Post Holdings Inc.
|
| Issue: | Perpetual convertible preferred stock
|
| Amount: | $210 million, upsized from $175 million
|
| Greenshoe: | $31.5 million, upsized from $26.25 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC
|
| Dividend: | 3.75%
|
| Price: | Par, $100 per share
|
| Yield: | 3.75%
|
| Conversion premium: | 25%
|
| Liquidation appreciation price: | $47.19
|
| Initial conversion rate: | 2.1192
|
| Calls: | Non-callable until Feb. 15, 2018, then provisionally callable at 130%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 3.75%-4.25%, up 20%-25%
|
| Distribution: | Rule 144A
|
| Pricing date: | Feb. 20
|
| Settlement date: | Feb. 26
|
| Stock symbol: | Nasdaq: POST
|
| Stock price: | $37.75 at close Feb. 20
|
| Market capitalization: | $1.23 billion
|
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