ST. PAUL, Minn., Aug. 20, 2014 /PRNewswire/ -- CHS Inc.
(NASDAQ: CHSCP, CHSCO, CHSCN) today announced the pricing of
6,752,188 shares of its Class B, Cumulative Redeemable Preferred
Stock, Series 1 (the "Class B Series 1 Preferred Stock") at
$29.62 per share to be used to redeem
about $200 million of qualified CHS
equity to more than 7,600 eligible owners.
The price of the Class B Series 1 Preferred Stock to be issued
was determined on Aug. 18, 2014. The
Class B, Series 1 Preferred Stock trades on the NASDAQ Global
Select Market under the symbol CHSCO and has an annual dividend
rate of 7.875 percent if, when and as declared by the CHS Board of
Directors. The distribution to eligible CHS member cooperatives and
associations and individuals is expected to take place by
Aug. 31, 2014.
"This distribution allows CHS to deliver direct economic value
to our owners by retiring eligible qualified equity with shares of
CHS preferred stock," said David
Bielenberg, chairman, CHS Board of Directors.
Bielenberg said the special equity redemption with preferred
stock is in keeping with the board's goals of providing an
appropriate economic return to the cooperative's owners while at
the same time investing in the future and maintaining a strong
balance sheet.
Of the qualified equity to be redeemed with preferred stock,
$140 million will be distributed to
about 935 eligible member cooperatives and associations, with 6,687
eligible individual owners sharing in $60
million. To be eligible, recipients of the equity redemption
with preferred stock must meet criteria established by the CHS
Board.
A registration statement relating to the Class B Series 1
Preferred Stock has been filed with the Securities and Exchange
Commission, but has not yet become effective. These securities may
not be issued prior to the time the registration statement becomes
effective. Copies of the prospectus included in the registration
statement may be obtained from the Securities and Exchange
Commission website at http://www.sec.gov.
CHS Inc. is a leading global agribusiness owned by farmers,
ranchers and cooperatives across the
United States. Diversified in energy, grains and foods, CHS
is committed to helping its customers, farmer-owners and other
stakeholders grow their businesses through its domestic and global
operations. CHS, a Fortune 100 company, supplies energy, crop
nutrients, grain marketing services, animal feed, food and food
ingredients, along with business solutions including insurance,
financial and risk management services. The company operates
petroleum refineries/pipelines and manufactures, markets and
distributes Cenex® brand refined fuels, lubricants,
propane and renewable energy products.
This document contains forward-looking statements within the
meaning of The Private Securities Litigation Reform Act of 1995
that are based on management's current expectations and
assumptions. These forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from the potential results discussed in the
forward-looking statements. The company undertakes no obligations
to publicly revise any forward-looking statements to reflect future
events or circumstances. For a discussion of additional factors
that may materially affect management's estimates and predictions,
please view the CHS Inc. annual report filed on Form 10-K for the
year ended Aug. 31, 2013, which can
be found on the Securities and Exchange Commission web site
(www.sec.gov).
SOURCE CHS Inc.