Post begins tender offers, consent solicitations for 7¾%, 8% notes

By Angela McDaniels

Tacoma, Wash., May 8 – Post Holdings, Inc. began tender offers for its $800 million of 7¾% senior notes due 2024 and $400 million of 8% senior notes due 2025, according to a company news release.

The company is also soliciting consents to proposed amendments to the indentures governing the notes that would eliminate substantially all of the restrictive covenants and some events of default.

The tender offers will expire at midnight ET at the end of June 5.

Per $1,000 principal amount, the company is offering $1,136.25 for the 7¾% notes and $1,165.00 for the 8% notes.

The above payments include a consent payment of $30.00 per $1,000 principal amount of notes tendered by the early tender deadline, 5 p.m. ET on May 19.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be May 24 for notes tendered by the early tender deadline and June 6 for notes tendered after the early tender deadline.

The company plans to redeem any 7¾% notes that remain outstanding after the offers.

The company will fund the tender offers with cash on hand and a new roughly $2 billion incremental term loan under its existing credit agreement.

Each of the tender offers and consent solicitations is subject to conditions that include the receipt of enough proceeds from the new term loan.

The dealer manager is Credit Suisse (800 820-1653). The information agent is Global Bondholder Services Corp. (212 430-3774 or 866 470-4500).

Post is a St. Louis-based cereal maker.

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