Post Holdings to pay down term loan debt with notes, equity proceeds

By Sara Rosenberg

New York, Aug. 10 – Post Holdings Inc. plans to repay $1.2 billion of its existing roughly $1.57 billion term loan B using proceeds from the issuance of $1.2 billion in senior unsecured notes and $275 million in new equity, according to an 8-K filed Monday with the Securities and Exchange Commission.

Remaining proceeds from the notes and equity will be used for general corporate purposes, which may include potential future acquisitions, working capital and capital expenditures.

Pro forma for the transaction, the company will have net leverage of 5.3 times, based on LTM third quarter pro forma adjusted EBITDA of $754 million, including $50 million in expected synergies from the MOM Brands acquisition.

Post is a St. Louis-based manufacturer, distributor and marketer of ready-to-eat cereal products.

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