Post Holdings greenshoe lifts 2.5% convertibles to $575 million

By Marisa Wong

Los Angeles, Aug. 17 – The underwriters of Post Holdings Inc.’s recent offering of 2.5% convertible notes due Aug. 15, 2027 exercised their $75 million over-allotment option in full, bringing the total deal size to $575 million, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Post priced an upsized $500 million of five-year convertible notes after the market close on Aug. 9 at par with a coupon of 2.5% and an initial conversion premium of 17.5%, as previously reported. The notes were issued on Aug. 12, including the greenshoe exercise.

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.

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.

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