Post Holdings upsizes senior notes offering to $600 million

ST. LOUIS - Post Holdings , Inc. (NYSE:POST), a consumer packaged goods holding company, has announced the pricing of a larger-than-expected senior notes offering due in 2034. The company has upsized its offering to $600 million in 6.250% senior notes at par, an increase from the $500 million initially planned.

The offering is set to close on October 9, 2024, subject to standard closing conditions. These unsecured senior obligations will be guaranteed by Post's existing domestic subsidiaries, excluding certain subsidiaries as per the terms of the offering.

Post Holdings intends to allocate the net proceeds from this offering to cover the offering's costs and to redeem its outstanding 5.625% senior notes due in 2028, including any related premiums and expenses. Should any funds remain, the company plans to use them for general corporate activities, which may encompass acquisitions, share buybacks, debt retirement or repayment, capital investments, and working capital enhancements.

The notes, along with the associated subsidiary guarantees, are being marketed to qualified institutional buyers through a private offering exempt from registration under Rule 144A, and to certain non-U.S. persons in offshore transactions complying with Regulation S under the Securities Act. These securities have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements.

The press release issued by Post Holdings clarifies that this announcement is not an offer to sell or a solicitation of an offer to buy any securities. It also states that the sale of securities will not be lawful in any jurisdiction that requires registration or qualification under its securities laws.

The company's statement includes forward-looking information, such as the anticipated completion and timing of the offering and the intended use of the net proceeds. However, it acknowledges that actual results could differ materially from those projected due to various factors and risks, and there is no guarantee that the offering or the redemption of the 5.625% senior notes will be completed as planned.

This news is based on a press release statement from Post Holdings, Inc.

In other recent news, Post Holdings Inc. has announced its intention to issue $500 million in senior notes due in 2034. The net proceeds will be primarily used to redeem all outstanding 5.625% senior notes due in 2028. In addition, the company has confirmed its fiscal year 2024 earnings forecast, maintaining its expected Adjusted EBITDA in the range of $1.37 to $1.39 billion.

Post Holdings also plans to offer $1.2 billion in senior notes due 2033, aimed at financing the concurrent cash tender offer for its existing 5.625% senior notes due 2028 and to repay borrowings under its revolving credit facility.

Analysts from Piper Sandler have reaffirmed their Overweight rating on Post Holdings, maintaining a steady price target of $140.00. Stifel has also raised the price target for Post Holdings shares to $130, reflecting confidence in the company's steady EBITDA growth.

Jefferies has increased the price target from $127.00 to $129.00, after Post Holdings reported third-quarter results surpassing expectations for both gross profit and EBITDA. These are the recent developments for Post Holdings.

InvestingPro Insights

Amidst Post Holdings' announcement of its upsized senior notes offering, InvestingPro data highlights a robust financial profile for the company. As of the last twelve months leading up to Q3 2024, Post Holdings boasts a revenue growth of 18.62%, indicating a solid expansion in its business operations. This is complemented by a significant EBITDA growth of 33.02%, showcasing the company's increasing profitability and operational efficiency.

The company's market capitalization stands at $6.73 billion, reflecting investor confidence and the scale of its operations within the consumer packaged goods industry. Moreover, analysts have identified a strong liquidity position, with liquid assets surpassing short-term obligations, which suggests that Post Holdings is well-prepared to meet its immediate financial commitments.

InvestingPro Tips also shed light on strategic financial management practices at Post Holdings. Management's aggressive share buyback initiative could signal confidence in the company's valuation and future prospects. Additionally, the company is expected to be profitable this year, reinforcing the positive outlook presented by recent financial data.

For investors seeking more in-depth analysis, there are several additional InvestingPro Tips available at https://www.investing.com/pro/POST. These tips provide a comprehensive view of the company's financial health and market performance, which could be particularly valuable in light of the recent developments in the company's capital structure.

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