By Wendy Van Sickle
Columbus, Ohio, April 18 – CHS Inc. entered into a note purchase agreement on April 18 to sell $700 million of notes in a four-part private placement, according to an 8-K filing with the Securities and Exchange Commission.
The notes include
• $150 million of 5.84% series DD notes due July 16, 2032;
• $150 million of 5.93% series EE notes due July 16, 2034;
• $150 million of 6.05% series FF notes due July 16, 2037; and
• $250 million of 6.13% series EE notes due July 16, 2039.
The note agreement requires the company to offer to prepay all of the outstanding notes in full in the event of a change of control. In addition, the company may prepay all or part of the notes, in integral multiples of $1 million and in a minimum amount of $5 million, at par plus a make-whole amount.
The note agreement contains, among other covenants, financial covenants not to permit the leverage ratio to exceed 3.5 to 1.0 and not to permit the ratio of adjusted consolidated funded debt to consolidated net worth to exceed 0.8 to 1.0.
Some of the purchasers are also holders of notes previously issued by the company in private placement offerings.
Proceeds will be used for general corporate purposes, including funding capital expenditures and investments.
CHS is an Inver Grove Heights, Minn.-based integrated agricultural company.
| Issuer: | CHS Inc.
|
| Issue: | Notes
|
| Amount: | $700 million
|
| Put option: | Upon change of control
|
| Call option: | Minimum amount of $5 million, at par plus a make-whole amount
|
| Pricing date: | April 18
|
| Distribution: | Private placement
|
|
|
| Series DD notes
|
| Amount: | $150 million
|
| Maturity: | July 16, 2032
|
| Coupon: | 5.84%
|
|
|
| Series EE notes
|
| Amount: | $150 million
|
| Maturity: | July 16, 2034
|
| Coupon: | 5.93%
|
|
|
| Series FF notes
|
| Amount: | $150 million
|
| Maturity: | July 16, 2037
|
| Coupon: | 6.05%
|
|
|
| Series GG notes
|
| Amount: | $150 million
|
| Maturity: | July 16, 2039
|
| Coupon: | 6.13%
|
|
|
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