Post greenshoe lifts 3.75% convertible preferreds to $241.5 million

By Susanna Moon

Chicago, Feb. 26 - Post Holdings Inc.'s underwriters fully exercised the $31.5 million over-allotment option on the company's offering of 3.75% convertible perpetual preferred stock, bringing the total deal size to $241.5 million.

As reported before, Post priced an upsized $210 million of the 3.75% convertible perpetual preferreds on Feb. 20 at a liquidation preference of $100 per share and an initial conversion premium of 25%.

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, as noted before.

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.

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