Laclede plans $125 million equity units to yield 6.75% to 7.25%, up 17.5%-22.5%

By Rebecca Melvin

New York, June 3 - Laclede Group Inc. plans to price a registered offering of $125 million in equity units that were talked to yield 6.75% to 7.25% with an initial conversion premium of 22.5%, according to a syndicate source.

Laclede is also offering of up to 9 million shares of its common stock.

Pricing is expected to be Wednesday after the market close. Settlement for the mandatory equity units, which will be issued in a stated amount of $50, will be April 1 2017.

There is a greenshoe for up to $18.8 million of additional equity units.

Proceeds from both offerings will be used to fund a portion of the cash consideration payable in connection with the pending acquisition of Alabama Gas Corp.

Credit Suisse, Wells Fargo Securities, J.P. Morgan Securities LLC and RBC Capital Markets are lead book-running managers for the units.

Laclede is a St. Louis-based utility.

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