Today, Post Holdings (NYSE:POST), Inc., a consumer packaged goods holding company, announced the completion of its redemption of the remaining 5.625% senior notes due in 2028. The company, headquartered in St. Louis, Missouri, and listed on the New York Stock Exchange under the ticker NYSE:POST, has finalized the redemption process that was initially disclosed in legal documents dating back to December 1, 2017.
With a market capitalization of $7.05 billion and trading near its 52-week high, Post Holdings has demonstrated strong market performance with a 36.82% year-to-date return.
The redeemed notes, with an aggregate principal amount of $464.9 million, were settled at a redemption price of 100.938%, totaling approximately $469.3 million. This figure includes accrued and unpaid interest up to the redemption date, amounting to roughly $10.0 million. The redemption was governed by an Indenture agreement and a series of supplemental indentures, the latest of which was dated May 19, 2023.
In other recent news, Post Holdings, a consumer packaged goods holding company, reported a robust performance in its fourth-quarter earnings for the fiscal year 2024. The company highlighted a 45% increase in adjusted EBITDA over the past two years, with strong contributions from both organic growth and strategic acquisitions, particularly in the pet sector.
Despite a slight 2% decline in consumption volumes, the company generated approximately $1 billion in free cash flow and reduced its net leverage significantly.
Evercore ISI analyst recently upgraded the price target for Post Holdings from $123.00 to $126.00, maintaining an Outperform rating on the stock. The analyst noted an increase in the FY25 EBITDA estimate to $1.447 billion, marking a 3% year-over-year growth. This new estimate surpasses both the previous forecast of $1.421 billion and the consensus estimate of $1.418 billion.
The analyst also highlighted the potential for organic profit growth from the execution of the Nutrish brand relaunch and the enterprise resource planning (ERP) implementation at Weetabix. Post Holdings is well-positioned to benefit from strategic capital allocation, including share repurchases and mergers and acquisitions.
With debt leverage projected to decrease to the low-4x area and an anticipated $500 million in free cash flow generation in FY25, the company is seen as a top value pick in the Food sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.