By James McCandless
San Antonio, May 14 – Spire Inc. priced a $200 million offering of $25-par series A cumulative redeemable perpetual preferred stock (Ba1/BBB) with a dividend of 5.9% on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal was announced Tuesday morning.
Morgan Stanley & Co. LLC, BofA Securities Inc. and Wells Fargo Securities, LLC are the joint bookrunners.
J.P. Morgan Securities LLC is the lead manager.
The preferreds are redeemable at par on or after Aug. 15, 2024. Prior to that, they are redeemable within 120 days after a ratings event.
Spire plans to use the proceeds to refinance long-term and short-term holding company debt and fund capital expenditures at both its utility and gas-related businesses.
The company plans to list the preferreds on the New York Stock Exchange.
Spire is a St. Louis-based natural gas utility company.
| Issuer: | Spire Inc.
|
| Description: | Series A cumulative redeemable perpetual preferred stock
|
| Amount: | $250 million, or 10 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Securities Inc. and Wells Fargo Securities, LLC
|
| Lead manager: | J.P. Morgan Securities LLC
|
| Co-managers: | Stifel, Nicolaus & Co., Inc. and TD Securities (USA) LLC
|
| Dividend: | 5.9%
|
| Price: | Par of $25.00
|
| Yield: | 5.9%
|
| Call: | On or after Aug. 15, 2024 at par; prior to that, within 120 days after a ratings event at $25.50
|
| Pricing date: | May 14
|
| Settlement date: | May 21
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Listing: | NYSE
|
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