Published on 8/11/2020 in the Prospect News High Yield Daily.
New Issue: Post Holdings prices upsized $400 million tap of 4 5/8% notes due 2030 at 105.5
By Paul A. Harris
Portland, Ore., Aug. 11 – Post Holdings, Inc. priced an upsized $400 million fungible add-on to its 4 5/8% senior notes due March 15, 2030 at 105.5 to yield 3 7/8% in a Tuesday drive-by, according to market sources.
The issue size increased from $300 million.
The issue price came at the rich end of the 104.5 to 105.5 price talk.
Initial talk was in the 4% yield area, according to a bond trader.
Barclays was on the left among a syndicate of bookrunners. The other bookrunners were Morgan Stanley & Co. LLC, BofA Securities Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Rabo Securities, RBC Capital Markets Corp., SunTrust Robinson Humphrey Inc., UBS Securities LLC and Wells Fargo Securities LLC.
The St. Louis-based cereal, food and nutrition company plans to use the proceeds for general corporate purposes, including working capital, share repurchases, capital expenditures and acquisitions.
| Issuer: | Post Holdings, Inc.
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| Amount: | $400 million, increased from $300 million
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| Maturity: | March 15, 2030
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| Bookrunners: | Barclays, Morgan Stanley & Co. LLC, BofA Securities Inc., BMO Capital Markets Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Rabo Securities, RBC Capital Markets Corp., SunTrust Robinson Humphrey Inc., UBS Securities LLC and Wells Fargo Securities LLC
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| Coupon: | 4 5/8%
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| Price: | 105.5
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| Yield to worst: | 3 7/8%
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| First call: | April 15, 2025 at 102.313
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| Trade date: | Aug. 11
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| Settlement date: | Aug. 14
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| Distribution: | Rule 144A and Regulation S for life
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| Original issue: | $1.25 billion priced in February 2020
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| Fungibility: | Add-on notes will become fungible with original notes
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| Total issue size: | $1.65 billion
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