Post Holdings drops $400 million convertible preferred stock offering

By Abigail W. Adams

Portland, Me., Nov. 19 – Post Holdings, Inc. has terminated its $400 million offering of series D cumulative perpetual convertible preferred stock, according to a company press release.

“Weak market conditions during the trading day precluded reaching the terms the company had established as a condition for issuing the preferred stock. As this was an entirely opportunistic capital raise, Post management terminated the offering,” the company said in the release.

The deal was expected to price 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 was the left lead manager and active bookrunner for the Rule 144A deal, along with Barclays and Morgan Stanley & Co. LLC.

Goldman Sachs & Co. LLC and Nomura were passive bookrunners.

The offering carried a greenshoe of $60 million.

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

Proceeds would have been 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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