CHS Prices Public Offering Of Preferred Stock At $25 Per Share

(RTTNews) - CHS Inc. (CHSCP) announced that it has priced 10 million shares of Class B Cumulative Redeemable Preferred Stock, Series 1 with a dividend rate of 7.875% per annum and a liquidation preference of $25.00 per share.

The company stated that the underwriters have been granted a 30-day option to purchase up to 1.50 million additional shares of the Class B Preferred Stock at the public offering price, less the underwriting discount, to cover over allotments, if any.

The approximately $241.58 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 replacement of a coker at one of its refineries with an expected total cost of $555.0 million and expected completion in fiscal 2015, with $131.7 million expended as of May 31, 2013, the company said.

CHS Inc. said it may also use the proceeds to partially fund a $327.0 million expansion at the National Cooperative Refinery Association's McPherson, Kan., refinery which is anticipated to be completed in fiscal 2016.