Spire Announces Proposed Offering of Equity Units

Rhea-AI Summary

Spire Inc. (NYSE: SR) announced a planned public offering of $150 million in equity units. Each unit, priced at $50, comprises a future common stock purchase contract and a 5% interest in a senior note due 2026. The company may offer an additional $15 million for overallotments. Proceeds are intended for general corporate purposes and to repay short-term debts. This move follows filing under an effective shelf registration statement with the SEC.

Positive

• Plans equity unit offering of $150 million.
• Potential additional $15 million for overallotments.
• Funds aimed at reducing short-term debt.
• Equity units attractively priced at $50 each.

Negative

• None.

ST. LOUIS, Feb. 8, 2021 /PRNewswire/ -- Spire Inc. (NYSE: SR) (the "Company") announced today that it plans to issue $150 million in equity units in a registered underwritten public offering. 

Each equity unit will be issued in a stated amount of $50 and will consist of a contract to purchase common stock of the Company in the future and a 1/20th, or 5%, undivided beneficial ownership interest in a remarketable unsecured senior note due 2026 having a principal amount of $1,000.

The Company expects to grant the underwriters the option to purchase up to $15 million in additional equity units for a period of 13 days solely for the purpose of covering over-allotments.

The Company intends to use the net proceeds from this offering for general corporate purposes and to repay short-term indebtedness outstanding under its commercial paper program.

Credit Suisse, BofA Securities and Wells Fargo Securities will be joint book-running managers for this offering. Copies of the prospectus and prospectus supplement relating to this offering may be obtained from the offices of 1) Credit Suisse at 6933 Louis Stephens Drive , Raleigh, North Carolina 27560 , Attn: Prospectus Department, by calling toll free 1-800-221-1037, or by e-mail at usa.prospectus@credit-suisse.com, 2) BofA Securities at NC1-004-03-43 200 North College Street, 3rd floor, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, by calling toll free 1-800-294-1322, or by email at dg.prospectus_requests@bofa.com, or 3) Wells Fargo Securities at 500 West 33rd Street, New York, New York, 10001, Attn: Equity Syndicate Department, by calling toll free 1-800-326-5897, or by e-mail at cmclientsupport@wellsfargo.com.  

This offering will be made under an effective shelf registration statement filed with the Securities and Exchange Commission. 

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction.  The offering of these securities will be made only by means of the prospectus supplement and accompanying prospectus.

About Spire
Spire Inc. (NYSE: SR) serves 1.7 million homes and businesses in Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing, Spire STL Pipeline and Spire Storage.

Cautionary Statements on Forward-Looking Information
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, economic factors, the competitive environment, governmental and regulatory policy and action, and risks associated with acquisitions. More complete descriptions and listings of these uncertainties and risk factors can be found in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2020 and the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2020, each as filed with the Securities and Exchange Commission.

Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com

Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com

View original content to download multimedia:http://www.prnewswire.com/news-releases/spire-announces-proposed-offering-of-equity-units-301224283.html

SOURCE Spire Inc.

FAQ

What is the purpose of Spire's $150 million equity unit offering?

Spire plans to use the proceeds for general corporate purposes and to repay short-term indebtedness.

How much is each equity unit priced at in Spire's offering?

Each equity unit is priced at $50.

When is the maturity date for the senior note associated with Spire's equity units?

The senior note is due in 2026.

Who are the underwriters for Spire's equity offering?

Credit Suisse, BofA Securities, and Wells Fargo Securities are the joint book-running managers.

What is the additional option related to Spire's equity offering?

Spire expects to grant underwriters an option to purchase up to $15 million in additional equity units for overallotments.