ST. LOUIS, MO - Post Holdings (NYSE:POST), Inc., a consumer packaged goods holding company, has created a direct financial obligation by issuing $600 million in senior notes, according to an 8-K filing with the Securities and Exchange Commission. The notes, bearing a 6.250% interest rate, will mature on October 15, 2034, with the first interest payment due April 15, 2025.
The company, known for its involvement in the grain mill products industry, issued the notes on September 25, 2024, to qualified institutional buyers and certain non-U.S. persons. The offering was made under an Indenture dated October 9, 2024, between Post Holdings, its subsidiary guarantors, and Computershare Trust Company, N.A., serving as trustee.
These unsecured senior notes are guaranteed by the company’s domestic subsidiaries, except for certain exclusions. They are equal in payment rights to other senior unsecured debts, senior to any subordinated debts, and effectively subordinate to secured debts to the extent of the collateral's value. They are also structurally subordinate to liabilities of non-guarantor subsidiaries.
Post Holdings has the option to redeem up to 40% of the notes before October 15, 2027, at a price above the principal amount, subject to certain conditions. Starting October 15, 2029, the company can redeem the notes in whole or in part at specified prices, with the ability to redeem at par from 2032 onwards.
This financial move by Post Holdings, headquartered at 2503 S. Hanley Road, St. Louis, MO, is disclosed in line with SEC regulations and is based on the company's 8-K filing. The information provided is aimed at offering investors a transparent view of the company's latest financial obligations.
In other recent news, Post Holdings, a consumer packaged goods holding company, has upsized its senior notes offering to $600 million, exceeding the initial $500 million plan. These notes, due in 2034, are intended to redeem outstanding 5.625% senior notes due in 2028 and fund general corporate activities. Concurrently, the company plans to issue $1.2 billion in senior notes due 2033, aimed at financing the tender offer for its existing notes and repaying borrowings.
Post Holdings has also confirmed its fiscal year 2024 earnings forecast, maintaining its expected Adjusted EBITDA in the range of $1.37 to $1.39 billion. Analysts from Piper Sandler have reaffirmed their Overweight rating on Post Holdings, while Stifel and Jefferies raised their price targets following the company's strong third-quarter results.
InvestingPro Insights
Post Holdings' recent $600 million senior notes issuance aligns with its robust financial position and growth trajectory. According to InvestingPro data, the company boasts a market capitalization of $6.77 billion and has demonstrated strong revenue growth of 18.62% over the last twelve months as of Q3 2024, reaching $7.86 billion. This growth is complemented by a healthy EBITDA margin of 16.52% and an impressive EBITDA growth of 33.02% over the same period.
InvestingPro Tips highlight that Post Holdings has been aggressively buying back shares, which could indicate management's confidence in the company's future prospects and potentially support the stock price. Additionally, the company's liquid assets exceed short-term obligations, suggesting a solid financial foundation that could help manage the new debt issuance effectively.
The stock's performance has been noteworthy, with a 40.93% price total return over the past year and trading near its 52-week high. This positive momentum, coupled with analysts' predictions of profitability this year, may provide investors with confidence in the company's ability to meet its new financial obligations.
For readers interested in a deeper analysis, InvestingPro offers 5 additional tips that could provide further insights into Post Holdings' financial health and market position.
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