Post Holdings Inc.
10/15/2024 | Press release | Distributed by Public on 10/15/2024 14:46
Financial Obligation Form 8 K
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On September 25, 2024, Post Holdings, Inc. (the "Company") issued 6.250% senior notes due 2034 (the "New Notes") at par in an aggregate principal amount of $600.0 million to certain persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in transactions outside of the United States in reliance on Regulation S under the Securities Act.
The New Notes were issued pursuant to an Indenture (the "Indenture") dated as of October 9, 2024 among the Company, the Company's subsidiary guarantors from time to time party thereto and Computershare Trust Company, N.A., as trustee.
The New Notes bear interest at a rate of 6.250% per year. Interest payments are due semi-annually in arrears each April 15 and October 15 with the first interest payment due on April 15, 2025. The maturity date of the New Notes is October 15, 2034.
The New Notes are senior, unsecured obligations of the Company and are fully and unconditionally guaranteed, jointly and severally, on a senior, unsecured basis by each of the Company's existing and subsequently acquired or organized domestic subsidiaries (other than immaterial subsidiaries, certain excluded subsidiaries and subsidiaries designated by the Company as unrestricted subsidiaries). Accordingly, the New Notes are:
•equal in right of payment with all of the Company's and the subsidiary guarantors' existing and future senior, unsecured indebtedness;
•senior in right of payment to any of the Company's and the subsidiary guarantors' existing and future indebtedness that is expressly subordinated to the New Notes;
•effectively subordinated to all of the Company's and the subsidiary guarantors' existing and future secured indebtedness, to the extent of the value of the assets securing that indebtedness; and
•structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent the Company or a subsidiary guarantor is not a holder thereof) preferred equity, if any, of the Company's and the subsidiary guarantors' non-guarantor subsidiaries.
At any time prior to October 15, 2027, the Company may redeem up to 40% of the aggregate principal amount of the New Notes at a redemption price equal to 106.25% of the principal amount of the New Notes redeemed, plus accrued and unpaid interest to the redemption date, with an amount not to exceed the net cash proceeds of certain equity offerings of the Company so long as at least 50% of the aggregate principal amount of the New Notes originally issued under the Indenture remains outstanding immediately after the redemption (unless all such New Notes are otherwise repurchased or redeemed) and the redemption occurs within 90 days of the date of the closing of such equity offering.
At any time prior to October 15, 2029, the Company may redeem all or a part of the New Notes at a redemption price equal to 100% of the principal amount of the New Notes redeemed and accrued and unpaid interest, plus a premium provided for in the Indenture, which would be the greater of (1) 1.0% of the principal amount of each New Note being redeemed or (2) the excess of (i) the present value at the redemption date of (x) the redemption price of each such New Note being redeemed at October 15, 2029 plus (y) all required interest payments due on each such New Note through October 15, 2029 (excluding accrued but unpaid interest to the redemption date), computed using a discount rate equal to the Treasury Rate (as defined in the Indenture) as of such redemption date plus 50 basis points; over (ii) the principal amount of such New Note.
On or after October 15, 2029, the Company may redeem all or a part of the New Notes at the redemption prices (expressed as a percentage of principal amount of the New Notes) set forth below, plus accrued and unpaid interest to the applicable redemption date, if redeemed during the twelve-month period beginning on October 15 of the years indicated below:
| Redemption Year | Price |
| 2029 | 103.125% |
| 2030 | 102.083% |
| 2031 | 101.042% |
| 2032 and thereafter | 100.000% |
If the Company experiences a Change of Control (as defined in the Indenture), holders of the New Notes may require the Company to purchase the New Notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of purchase.
2
The Indenture limits the Company's ability and the ability of its restricted subsidiaries to, among other things: borrow money or guarantee debt; create liens; pay dividends on or redeem or repurchase stock; make specified types of investments and acquisitions; enter into or permit to exist contractual limits on the ability of the Company's subsidiaries to pay dividends to the Company; enter into new lines of business; enter into transactions with affiliates; and sell assets or merge with other companies. Certain of these covenants are subject to suspension when and if the New Notes are rated at least "BBB-" by Standard & Poor's Ratings Group or at least "Baa3" by Moody's Investors Service, Inc.
The Indenture contains customary events of default that include, among other things (subject in certain cases to customary grace and cure periods): (i) non-payment of principal or interest; (ii) breach of certain covenants contained in the Indenture or the New Notes; (iii) defaults in failure to pay certain other indebtedness or the acceleration of certain other indebtedness prior to maturity; (iv) the failure to pay certain final judgments; (v) the failure of certain guarantees to be enforceable; and (vi) certain events of bankruptcy or insolvency. Generally, if an event of default occurs (subject to certain exceptions), the trustee or the holders of at least 25% in aggregate principal amount of the then outstanding New Notes may declare all of the New Notes to be due and payable immediately.
Attached as Exhibit 4.1 hereto and incorporated herein by reference is a copy of the Indenture. The foregoing description of the terms of the Indenture does not purport to be complete and is qualified in its entirety by reference to such exhibit.