By Abigail W. Adams
Portland, Me., Feb. 10 – Spire Inc. priced an upsized $160 million three-year $50-par equity units (BBB) after the market close on Tuesday at the rich end of talk with a dividend of 7.5% and a threshold appreciation premium of 22.5%, according to an FWP filing with the Securities and Exchange Commission.
Price talk was for a dividend of 7.5% to 8% and a threshold appreciation premium of 17.5% to 22.5%, according to a market source.
Credit Suisse Securities (USA) LLC, BofA Securities Inc. and Wells Fargo Securities LLC were bookrunners for the registered offering, which carries a greenshoe of $15 million.
The initial size of the offering was $150 million.
The units consist of a stock purchase contract and a 1/20th interest in the company’s $1,000-par 0.75% series A senior notes due 2026.
The stock purchase contract may be settled early upon a fundamental change.
Net proceeds are expected to be $154 million or will be $168.5 million if the greenshoe is exercised in full.
Proceeds will be used for general corporate purposes.
Spire is a St. Louis-based natural gas company.
Issuer: | Spire Inc.
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Securities: | Equity units
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Amount: | $160 million, or 3.2 million units
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Greenshoe: | $15 million or 300,000 units
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Maturity: | March 1, 2024
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Bookrunners: | Credit Suisse Securities (USA) LLC, BofA Securities Inc. and Wells Fargo Securities LLC
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Co-managers: | Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Guggenheim Securities, LLC and TD Securities (USA) LLC
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Dividend: | 7.5%
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Price: | Par of $50
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Yield: | 7.5%
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Appreciation premium: | 22.5%
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Conversion price: | $78.6906
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Conversion rate: | Minimum of 0.6354, maximum of 0.7783
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Call options: | None
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Put options: | Upon a fundamental change
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Pricing date: | Feb. 9
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Settlement date: | Feb. 16
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Rating: | S&P: BBB
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Distribution: | Registered
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Talk: | Dividend of 7.5% to 8% and threshold appreciation premium of 17.5% to 22.5%
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Stock symbol: | NYSE: SR
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Stock price: | $64.24 at market close Feb. 10
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Market capitalization: | $3.32 billion
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