Post Holdings Announces Redemption of $464.9 Million 5.625% Senior Notes Due January 2028

Rhea-AI Summary

Post Holdings announced plans to redeem $464.9 million of its outstanding 5.625% senior notes due January 2028 on December 2, 2024. The redemption price will be 100.938% of the principal amount, plus accrued and unpaid interest. The company will fund the redemption using cash on hand, which includes proceeds from its recent October 9, 2024 issuance of $600 million in 6.25% senior notes due 2034.

Positive

• Refinancing of debt with longer maturity (from 2028 to 2034) improves debt structure

Negative

• New notes carry higher interest rate (6.25% vs 5.625%), increasing interest expenses
• Premium payment of 0.938% on redemption adds to debt costs

Insights

Financial Analyst

This debt refinancing move demonstrates strategic financial management by Post Holdings. They're replacing $464.9 million of 5.625% notes with recently issued $600 million of 6.25% notes due 2034. While the new notes carry a higher interest rate, the extended maturity to 2034 provides improved debt structure and longer-term financial flexibility.

The redemption premium of 0.938% represents a relatively modest cost of approximately $4.4 million. The company's ability to execute this refinancing with cash on hand reflects solid liquidity position. However, the higher interest rate on the new notes will increase annual interest expenses by approximately $2.9 million, a manageable amount given Post's scale of operations.

ST. LOUIS, Nov. 15, 2024 /PRNewswire/ -- Post Holdings, Inc. (NYSE:POST) (the "Company" or "Post") today announced it intends to redeem the remaining $464.9 million in aggregate principal amount of its outstanding 5.625% senior notes due January 2028 (CUSIPS: 737446AN4 and U7318UAN2) (the "2028 Notes") on December 2, 2024 (the "redemption date"). The 2028 Notes will be redeemed at a redemption price of 100.938% of the principal amount thereof, plus the accrued and unpaid interest to, but excluding, the redemption date (the "redemption amount"). Beginning on the redemption date, the 2028 Notes will no longer be deemed outstanding and interest will no longer accrue on such securities. Computershare Trust Company, N.A. is the trustee for the 2028 Notes.

The Company plans to fund the redemption amount with cash on hand, which includes net proceeds from the Company's previously disclosed issuance on October 9, 2024 of $600.0 million in aggregate principal amount of its 6.25% senior notes due 2034.

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. Its businesses include Post Consumer Brands, Weetabix, Michael Foods and Bob Evans Farms. Post Consumer Brands is a leader in the North American ready-to-eat cereal and pet food categories and also markets Peter Pan^® peanut butter. Weetabix is home to the United Kingdom's number one selling ready-to-eat cereal brand, Weetabix^®. Michael Foods and Bob Evans Farms are leaders in refrigerated foods, delivering innovative, value-added egg and refrigerated potato side dish products to the foodservice and retail channels. Post participates in the private brand food category through its ownership interest in 8th Avenue Food & Provisions, Inc. For more information, visit www.postholdings.com.

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

 

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SOURCE Post Holdings, Inc.

FAQ

When will Post Holdings (POST) redeem its 5.625% senior notes?

Post Holdings will redeem its 5.625% senior notes on December 2, 2024.

What is the redemption amount for Post Holdings' (POST) 2028 notes?

The redemption price is 100.938% of the principal amount ($464.9 million) plus accrued and unpaid interest.

How is Post Holdings (POST) funding the 2028 notes redemption?

Post Holdings is funding the redemption with cash on hand, including proceeds from its October 9, 2024 issuance of $600 million in 6.25% senior notes due 2034.