Market Overview

CHS Prices 10M Share Offering at $25/Share


CHS Inc. (NASDAQ: CHSCP) today announced the pricing of 10,000,000 shares of Class B Cumulative Redeemable Preferred Stock, Series 1 with a dividend rate of 7.875% per annum and a liquidation preference of $25.00 per share. Pricing took place Sept. 19, 2013.  The underwriters have been granted a 30-day option to purchase up to 1,500,000 additional shares of the Class B Preferred Stock at the public offering price, less the underwriting discount, to cover over allotments, if any.

The approximately $241,575,000 of net proceeds, after deducting underwriting discounts, commissions and expected offering expenses payable by CHS Inc., are intended to be used for general corporate purposes, which may include partially funding the replacement of a coker at one of its refineries with an expected total cost of $555.0 million and expected completion in fiscal 2015, with $131.7 million expended as of May 31, 2013. It may also be used to partially fund a $327.0 million expansion at the National Cooperative Refinery Association's (NCRA) McPherson, Kan., refinery which is anticipated to be completed in fiscal 2016.

The offering is expected to close on or about Sept. 26, 2013, subject to the satisfaction of customary closing conditions. The

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Posted-In: News Guidance Asset Sales M&A Global


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