Grain News


CHS Inc. Prices Preferred Stock Shares For Redemption of $200 Million of Patron Equity

Date Posted: August 21, 2014

St. Paul, MN—CHS Inc. (NASDAQ: CHSCP, CHSCO, CHSCN) Aug. 20 announced the pricing of 6,752,188 shares of its Class B, Cumulative Redeemable Preferred Stock, Series 1 (the "Class B Series 1 Preferred Stock") at $29.62 per share to be used to redeem about $200 million of qualified CHS equity to more than 7,600 eligible owners.

The price of the Class B Series 1 Preferred Stock to be issued was determined on Aug. 18, 2014.

The Class B, Series 1 Preferred Stock trades on the NASDAQ Global Select Market under the symbol CHSCO and has an annual dividend rate of 7.875 percent if, when and as declared by the CHS Board of Directors.

The distribution to eligible CHS member cooperatives and associations and individuals is expected to take place by Aug. 31, 2014.

"This distribution allows CHS to deliver direct economic value to our owners by retiring eligible qualified equity with shares of CHS preferred stock," said David Bielenberg, chairman, CHS Board of Directors.

Bielenberg said the special equity redemption with preferred stock is in keeping with the board's goals of providing an appropriate economic return to the cooperative's owners while at the same time investing in the future and maintaining a strong balance sheet.

Of the qualified equity to be redeemed with preferred stock, $140 million will be distributed to about 935 eligible member cooperatives and associations, with 6,687 eligible individual owners sharing in $60 million.

To be eligible, recipients of the equity redemption with preferred stock must meet criteria established by the CHS Board.

A registration statement relating to the Class B Series 1 Preferred Stock has been filed with the Securities and Exchange Commission, but has not yet become effective.

These securities may not be issued prior to the time the registration statement becomes effective.

Copies of the prospectus included in the registration statement may be obtained from the Securities and Exchange Commission website at http://www.sec.gov.

For more information, call 651-355-4946.

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