Post Holdings talks $400 million convertible preferred stock to yield 4%-4.5%, up 25%-30%

By Abigail W. Adams

Portland, Me., Nov. 19 – Post Holdings, Inc. plans to price $400 million of series D cumulative perpetual convertible preferred stock after the market close on Monday with price talk for a dividend of 4% to 4.5% and an initial conversion premium of 25% to 30%, according to a market source.

Credit Suisse Securities (USA) LLC is the left lead manager and, along with Barclays and Morgan Stanley & Co. LLC, are the active bookrunners for the Rule 144A deal. Goldman Sachs & Co. LLC and Nomura are passive bookrunners.

The offering carries a greenshoe of $60 million.

The notes are non-callable for five-years and then subject to a 130% hurdle. There are no puts.

Proceeds will be used to repay a portion of the term loan.

Post Holdings is a St. Louis, Mo.-based consumer packaged goods holding company.

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