By Paul A. Harris
Portland, Ore., Feb. 11 – Post Holdings Inc. priced an upsized $1.25 billion issue of 10.25-year senior notes (B2/B+) at par to yield 4 5/8% in a Tuesday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield printed in the middle of yield talk in the 4 5/8% area. Initial talk had the deal coming to yield in the 4¾% area.
The offer played to $2 billion-plus of orders, a market source said.
Morgan Stanley & Co. LLC was the lead left bookrunner. Barclays was a joint bookrunner.
The St. Louis-based cereal, food and nutrition company plans to use the proceeds to redeem its 5½% notes due 2025, with any remaining proceeds to be used for general corporate purposes, which could include, among other things, working capital, capital expenditures, acquisitions, share repurchases and debt repayment.
| Issuer: | Post Holdings Inc.
|
| Amount: | $1.25 billion, increased from $1 billion
|
| Maturity: | April 15, 2030
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Joint bookrunner: | Barclays
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 303 bps
|
| First call: | April 15, 2025 at 102.313
|
| Equity clawback: | 40% at 104.625 until April 15, 2023
|
| Trade date: | Feb. 11
|
| Settlement date: | Feb. 26
|
| Ratings: | Moody's: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4 5/8% area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
