By Rebecca Melvin
New York, June 5 – Laclede Group Inc. priced $125 million in equity units, or 2.5 million units at $50 each, to yield 6.75% and with an initial conversion premium of 25%, according to a release.
Laclede also priced 9 million shares of common stock at $46.25 per share for $416.15 million of proceeds.
Pricing of the registered mandatory deal came at the tight end of 6.75% to 7.25% coupon talk and beyond the tight end of 17.5%- 22.5% premium talk.
There is a greenshoe for up to $18.8 million of additional equity units.
Proceeds from both offerings will be used to fund a portion of the cash consideration payable in connection with the pending acquisition of Alabama Gas Corp.
Credit Suisse, Wells Fargo Securities, J.P. Morgan Securities LLC and RBC Capital Markets are lead book-running managers for the units.
Laclede is a St. Louis-based utility.
| Issuer: | Laclede Group Inc.
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| Issue: | Equity units
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| Amount: | $125 million
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| Greenshoe: | $18.8 million
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| Maturity: | April 1, 2017
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| Bookrunners: | Credit Suisse, Wells Fargo Securities, J.P. Morgan Securities LLC and RBC Capital Markets
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| Concurrent offering: | $416.25 million of common stock, or 9 million shares at $46.25 each
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| Distribution rate: | 6.75%
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| Price: | Par, $50
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| Threshold appreciation premium: | 25%
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| Threshold appreciation price: | $57.81 per share
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| Takeover protection: | Yes
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| Price talk: | 6.75% to 7.25%, up 17.5%-22.5%
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| Pricing date: | June 5
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| Settlement date: | June 11
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| Stock symbol: | NYSE: LG
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| Stock reference price: | $46.25
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| Stock price: | $47.19 as of close June 5
|
| Market capitalization: | $1.53 billion
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| Distribution: | Registered
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