By Abigail W. Adams
Portland, Me., Aug. 10 – Post Holdings Inc. priced an upsized $500 million of five-year convertible notes after the market close on Tuesday at par with a coupon of 2.5% and an initial conversion premium of 17.5%, according to a company news release.
Pricing came at the midpoint of talk for a coupon of 2.25% to 2.75% and at the cheap end of talk for an initial conversion premium of 17.5% to 22.5%, according to a market source.
Barclays (lead left), J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $75 million.
The initial size of the offering was $400 million with a greenshoe of $60 million.
The notes are non-callable until Aug. 20, 2025 and then redeemable for cash subject to a 130% hurdle.
They are putable upon a fundamental change.
Proceeds will be used to repurchase up to $100 million of common stock and for general corporate purposes.
Post Holdings is a St. Louis-based consumer packaged goods holding company.
| Issuer: | Post Holdings Inc.
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Aug. 15, 2027
|
| Bookrunners: | Barclays (lead left), J.P. Morgan Securities LLC and Citigroup Global Markets Inc.
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $106.10
|
| Conversion rate: | 9.4248
|
| Call options: | Non-callable until Aug. 20, 2025 and then redeemable for cash subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Aug. 9
|
| Settlement date: | Aug. 12
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 2.25% to 2.75% and initial conversion premium of 17.5% to 22.5%
|
| Stock symbol: | NYSE: POST
|
| Stock price: | $90.30 at market close Aug. 9
|
| Market capitalization: | $5.49 billion
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