By Stephanie N. Rotondo
Phoenix, Sept. 8 – CHS Inc. priced $475 million of 6.75% series 3 class B reset rate cumulative redeemable perpetual preferred stock on Monday, according to a market source.
Initial price talk was 6.75% to 6.875%. The offering was originally expected to be $250 million.
BofA Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunning managers.
Dividends will be payable on a quarterly basis. The rate will be fixed until Sept. 30, 2024, at which point it will reset to a rate of Libor plus 415.5 basis points, determined quarterly.
The rate cannot exceed 8%.
The preferreds become redeemable on or after Sept. 30, 2024 at par plus accrued dividends. There is also a change-of-control feature.
Proceeds will be used to fund an anticipated nitrogen fertilizer manufacturing plant in Spiritwood, N.D.
CHS is an Inver Grove Heights, Minn.-based integrated agricultural company.
| Issuer: | CHS Inc.
|
| Securities: | Series 3 class B cumulative redeemable preferred stock
|
| Amount: | $475 million, or 19 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Dividend: | Fixed at 6.75% until Sept. 30, 2024, then floating at Libor plus 415.5 bps
|
| Price: | Par of $25.00
|
| Yield: | 6.75%
|
| Talk: | 6.75% to 6.875%
|
| Call options: | On or after Sept. 30, 2024 or upon a change of control at par plus accrued dividends
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 15
|
| Expected listing: | Nasdaq: CHSCM
|
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