Spire Missouri issues $200 million in first mortgage bonds in private placement

Spire Missouri Inc., a wholly owned subsidiary of Spire Inc. (NYSE:SR), a $5.2 billion market cap utility company, entered into a bond purchase agreement with institutional investors on Thursday to issue $200 million in first mortgage bonds through a private placement, according to a statement filed with the Securities and Exchange Commission. InvestingPro analysis indicates the company operates with a significant debt burden, making this issuance particularly noteworthy for investors tracking the utility sector.

The issuance includes $150 million in 4.60% Series bonds due September 15, 2030, and $50 million in 4.65% Series bonds due January 15, 2031. Interest on the bonds will be paid semi-annually on March 15 and September 15 each year.

The bonds are secured by an existing mortgage and deed of trust, originally dated February 1, 1945, and currently administered by Regions Bank as trustee. The mortgage was supplemented by a new agreement dated Thursday. The bonds will rank equally with all other first mortgage bonds issued under the same mortgage.

Spire Missouri stated that proceeds from the bond sale will be used for general corporate purposes. The company’s financial position shows total debt of $4.9 billion and a current ratio of 0.37, according to InvestingPro data, suggesting careful management of short-term obligations will be crucial.

The bond purchase agreement includes provisions similar to previous supplemental indentures, such as limitations on certain types of liens, restrictions on dividend payments, and other restricted payments. It also outlines events of default, including payment and covenant defaults, as well as bankruptcy or insolvency. In the event of a default, the trustee may accelerate the maturity of the bonds if directed by holders of a majority of the outstanding first mortgage bonds.

The supplemental indenture allows Spire Missouri to redeem all or part of the bonds at 100% of the principal amount plus a make-whole amount, calculated based on the discounted value of remaining scheduled payments compared to the principal amount, using a discount rate 0.50% above the yield of comparable U.S. Treasury securities. Additionally, the company may redeem the 2030 bonds in whole at par beginning September 15, 2030, and the 2031 bonds in whole at par beginning January 15, 2031, or at any time if substantially all of the mortgaged property is taken by eminent domain or sold to a governmental entity.

This information is based on a press release statement filed with the SEC. The stock currently trades near its 52-week high, offering a dividend yield of 3.68%, with a remarkable track record of maintaining dividend payments for 55 consecutive years. For deeper insights into Spire’s financial health and detailed analysis, investors can access comprehensive Pro Research Reports available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Spire has been the subject of multiple analyst updates and strategic developments. Mizuho raised its price target for Spire to $93, citing an improved acquisition outlook and a shift to a premium jurisdiction in Missouri. UBS also increased its price target to $95, noting a supportive regulatory framework in Missouri and the de-risking benefits of Spire’s acquisition in Tennessee. Jefferies initiated coverage with a Buy rating and a $92 price target, projecting a 7.5% EPS CAGR for fiscal years 2025-2030, which surpasses both company guidance and consensus estimates.

Additionally, Spire announced the appointment of Steve Greenley as the new executive vice president and chief operating officer, effective October 13, 2025. Greenley will oversee operations across several states, including Alabama, Missouri, and Mississippi. Previously, Mizuho had also raised its price target to $83, highlighting Missouri’s upside potential following a rate case. These developments reflect a period of strategic growth and regulatory support for Spire.

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