By Abigail W. Adams
Portland, Me., Feb. 10 – Spire Inc. priced an upsized $160 million three-year $50-par equity units (BBB) after the market close on Tuesday at the rich end of talk with a dividend of 7.5% and a threshold appreciation premium of 22.5%, according to an FWP filing with the Securities and Exchange Commission.
Price talk was for a dividend of 7.5% to 8% and a threshold appreciation premium of 17.5% to 22.5%, according to a market source.
Credit Suisse Securities (USA) LLC, BofA Securities Inc. and Wells Fargo Securities LLC were bookrunners for the registered offering, which carries a greenshoe of $15 million.
The initial size of the offering was $150 million.
The units consist of a stock purchase contract and a 1/20th interest in the company’s $1,000-par 0.75% series A senior notes due 2026.
The stock purchase contract may be settled early upon a fundamental change.
Net proceeds are expected to be $154 million or will be $168.5 million if the greenshoe is exercised in full.
Proceeds will be used for general corporate purposes.
Spire is a St. Louis-based natural gas company.
| Issuer: | Spire Inc.
|
| Securities: | Equity units
|
| Amount: | $160 million, or 3.2 million units
|
| Greenshoe: | $15 million or 300,000 units
|
| Maturity: | March 1, 2024
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, BofA Securities Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Guggenheim Securities, LLC and TD Securities (USA) LLC
|
| Dividend: | 7.5%
|
| Price: | Par of $50
|
| Yield: | 7.5%
|
| Appreciation premium: | 22.5%
|
| Conversion price: | $78.6906
|
| Conversion rate: | Minimum of 0.6354, maximum of 0.7783
|
| Call options: | None
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Feb. 9
|
| Settlement date: | Feb. 16
|
| Rating: | S&P: BBB
|
| Distribution: | Registered
|
| Talk: | Dividend of 7.5% to 8% and threshold appreciation premium of 17.5% to 22.5%
|
| Stock symbol: | NYSE: SR
|
| Stock price: | $64.24 at market close Feb. 10
|
| Market capitalization: | $3.32 billion
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
