Post Holdings Announces Pricing of Senior Notes Offering

Rhea-AI Summary

Post Holdings (NYSE:POST) announced the pricing of its $1,200.0 million senior notes offering with a 6.375% interest rate due in 2033. The offering is expected to close on August 22, 2024, pending customary conditions. The notes, guaranteed by Post's domestic subsidiaries, are to finance a cash tender offer for up to $475.0 million of its existing 5.625% senior notes due 2028 and repay borrowings under its revolving credit facility. Remaining proceeds will be used for general corporate purposes like acquisitions, share repurchases, and debt repayment. The notes will be offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S. Not registered under the Securities Act, these notes cannot be offered or sold in the U.S. without an exemption. This release is not a solicitation nor a sale offer.

Positive

• $1,200.0 million senior notes offering priced at 6.375% due 2033.
• Proceeds to finance the cash tender offer for up to $475.0 million of 5.625% senior notes due 2028.
• Remaining proceeds to be used for general corporate purposes, potentially including acquisitions and share repurchases.

Negative

• Notes offering not conditioned on the consummation of the Tender Offer.
• Potential risks associated with market conditions affecting final terms and amounts of the Notes.

News Market Reaction

-0.74%

1 alert

-0.74% News Effect

On the day this news was published, POST declined 0.74%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

ST. LOUIS, Aug. 8, 2024 /PRNewswire/ -- Post Holdings, Inc. (NYSE:POST) (the "Company" or "Post") today announced the pricing of its previously announced senior notes offering. The Company priced $1,200.0 million in aggregate principal amount of 6.375% senior notes due 2033 at par (the "Notes"). The Notes offering is expected to close on August 22, 2024, subject to customary closing conditions. The Notes will be unsecured, senior obligations of the Company and will be guaranteed by the Company's existing and subsequently acquired or organized domestic subsidiaries (other than immaterial subsidiaries, certain excluded subsidiaries and subsidiaries designated as unrestricted subsidiaries).

The Company intends to use the net proceeds from the Notes offering for purposes of financing its cash tender offer (the "Tender Offer") for up to $475.0 million (subject to increase or decrease) in aggregate principal amount of its existing 5.625% senior notes due 2028 that are validly tendered and accepted for purchase in the Tender Offer and repayment in full of its borrowings under its revolving credit facility (together, the "other financing transactions") and to pay the costs, fees and expenses associated with the Notes offering and the other financing transactions. To the extent there are any remaining net proceeds, the Company intends to use such proceeds for general corporate purposes, which could include, among other things, acquisitions, share repurchases, retirement or repayment of existing debt, capital expenditures and working capital. The final terms and amounts of the Notes are subject to market and other conditions and may be materially different than expectations. The offering is not conditioned upon the consummation of the Tender Offer.

The Notes and the related subsidiary guarantees are being offered to persons reasonably believed to be qualified institutional buyers in an offering exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons outside of the United States in compliance with Regulation S under the Securities Act. The Notes and the related subsidiary guarantees have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release is not an offer to sell or a solicitation of an offer to buy any security, nor shall there be any sales of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any jurisdiction. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act. This press release is not a tender offer for any of the Company's 5.625% senior notes due 2028.

Cautionary Statement on Forward-Looking Language

Forward-looking statements, within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, are made throughout this press release, including statements regarding the completion of the offering, timing, the expected amount and intended use of the net proceeds of the offering and the Tender Offer. These forward-looking statements are sometimes identified from the use of forward-looking words such as "believe," "should," "could," "potential," "continue," "expect," "project," "estimate," "predict," "anticipate," "aim," "intend," "plan," "forecast," "target," "is likely," "will," "can," "may," "would" or the negative of these terms or similar expressions elsewhere in this press release. All forward-looking statements are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors and risks include, but are not limited to, unanticipated developments that prevent, delay or negatively impact the offering or the Tender Offer and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's cautionary statements contained in its filings with the Securities and Exchange Commission. The Company may not consummate the offering as described in this press release and, if the offering is consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. These forward-looking statements represent the Company's judgment as of the date of this press release. The Company disclaims, however, any intent or obligation to update these forward-looking statements. There can be no assurance that the offering or the Tender Offer will be completed as anticipated or at all.

About Post Holdings, Inc.

Post Holdings, Inc., headquartered in St. Louis, Missouri, is a consumer packaged goods holding company with businesses operating in the center-of-the-store, refrigerated, foodservice and food ingredient categories.

Contact:
Investor Relations
Daniel O'Rourke
daniel.orourke@postholdings.com
(314) 806-3959

 

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SOURCE Post Holdings, Inc.

FAQ

What is the value of Post Holdings' senior notes offering announced on August 8, 2024?

Post Holdings announced a $1,200.0 million senior notes offering.

What is the interest rate of Post Holdings' new senior notes due 2033?

The new senior notes have an interest rate of 6.375%.

When is the expected closing date for Post Holdings' senior notes offering?

The closing date is expected to be August 22, 2024.

What will Post Holdings use the proceeds from the senior notes offering for?

The proceeds will be used to finance a cash tender offer for up to $475.0 million of existing 5.625% senior notes due 2028 and repay borrowings under its revolving credit facility.

Are Post Holdings' new senior notes registered under the Securities Act?

No, the new senior notes are not registered under the Securities Act and cannot be offered or sold in the U.S. without an exemption.