Post to price $500 million tap of 5¾% notes due 2027 on Monday

By Paul A. Harris

Portland, Ore., Aug. 7 – Post Holdings, Inc. plans to price a $500 million add-on to its 5¾% senior notes due March 1, 2027 (current ratings B3/B) on Monday following a mid-morning conference call with investors, according to a syndicate source.

Morgan Stanley & Co. LLC, Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and UBS Investment Bank are the joint bookrunners for the Rule 144A and Regulation S for life offering. The notes feature a make-whole call at Treasuries plus 50 basis points until March 1, 2022, then become callable at 102.875. They also feature a 40% equity clawback at 107.75 until March 1, 2022.

The St. Louis-based consumer packaged goods holding company plans to use the proceeds for general corporate purposes, which could include, among other things, acquisitions, debt repayment, working capital and capital expenditures.

The original $750 million issue priced at par on Feb. 6, 2017.

The Rule 144A add-on notes become immediately fungible with the original notes. The Regulation S add-on notes will become fungible with the original notes following 40-day cooling period.

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