Grain News


CHS Prices Public Offering of Preferred Stock at $25 Per Share

Date Posted: March 5, 2014

St. Paul, MN—CHS Inc. (NASDAQ: CHSCP) March 5 announced the pricing of 16,800,000 shares of Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 (the "Class B Series 2 Preferred Stock") with a liquidation preference of $25.00 per share and a dividend rate of 7.10% per annum to, but excluding, March 31, 2024, and thereafter, at an annual rate equal to three-month LIBOR, as determined for the applicable quarterly period, plus a spread 4.298%, but in no event will the sum of such annual rate and spread be greater than 8% per annum. Pricing took place on March 4, 2014.

The approximately $406.2 million of net proceeds, after deducting underwriting discounts, commissions and expected offering expenses payable by CHS Inc., are intended to be used for general corporate purposes, which may include partially funding the anticipated construction of a nitrogen fertilizer manufacturing plant to be located in Spiritwood, N.D.

The offering is expected to close on or about March 11, 2014, subject to the satisfaction of customary closing conditions.

The Class B Series 2 Preferred Stock is a new issue of securities and, prior to this offering, there has been no established trading market.

The Class B Series 2 Preferred Stock has been approved for listing on the NASDAQ Global Select Market, subject to official notice of issuance, under the symbol "CHSCN."

It has not been rated by any nationally recognized statistical rating agency.

BofA Merrill Lynch and Wells Fargo Securities acted as joint book-running managers in the offering, and D.A. Davidson & Co. served as lead manager.

For more information, call 651-355-4946.

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