ST. LOUIS - Post Holdings , Inc. (NYSE:POST), a consumer packaged goods holding company, announced today its plans to offer $500 million in senior notes due in 2034 to qualified institutional buyers and certain non-U.S. persons. The notes, which are to be unsecured senior obligations, will also be guaranteed by the company's existing and future domestic subsidiaries, with some exclusions.
The company stated that the net proceeds from this offering will be used primarily to redeem all of its outstanding 5.625% senior notes due in 2028, covering associated premiums, fees, costs, and expenses. Should any proceeds remain, Post Holdings intends to allocate them towards general corporate purposes. These may include acquisitions, share repurchases, debt retirement or repayment, capital expenditures, and working capital.
The offering and its final terms are subject to market conditions and may vary significantly from current expectations. It's also noted that the offering's completion is not contingent upon the redemption of the 5.625% senior notes due in 2028, which is expected to take place on or after December 1, 2024.
The notes and subsidiary guarantees will be offered in a private sale exempt from registration under the Securities Act of 1933, as amended, and will not be available for sale in the United States or to U.S. persons unless registered or exempt from registration requirements.
This news follows the company's forward-looking statements cautioning that the offering and redemption activities are subject to factors and uncertainties that could alter the anticipated outcomes. Post Holdings has emphasized that there can be no assurance that the offering or redemption will be completed as expected, or at all.
Post Holdings, based in St. Louis, Missouri, operates businesses in various food sectors, including center-of-the-store, refrigerated, foodservice, and food ingredient categories. The information in this article is based on a press release statement from Post Holdings.
In other recent news, Post Holdings, Inc. has confirmed its fiscal year 2024 earnings forecast, maintaining its expected Adjusted EBITDA in the range of $1.37 to $1.39 billion. The company has also announced plans to offer $1.2 billion in senior notes due 2033. This move is aimed at financing the company's 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. The rating comes after discussions with the company's management revealed a continued emphasis on mergers and acquisitions. Stifel has also raised the price target for Post Holdings shares to $130, reflecting confidence in the company's steady EBITDA growth.
Jefferies has followed suit, increasing 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, a company that continues to show strong financial health and growth prospects.
InvestingPro Insights
As Post Holdings, Inc. (NYSE:POST) moves forward with its strategic financial activities, including the offering of senior notes and the redemption of existing debt, investors and analysts are closely monitoring the company's performance metrics and market position. According to InvestingPro data, Post Holdings currently boasts a market capitalization of $6.66 billion, indicative of its substantial presence in the consumer packaged goods industry.
InvestingPro data also highlights the company's P/E ratio at 19.66, which suggests a higher valuation relative to near-term earnings growth, a factor that investors might consider when assessing the company's current stock price. However, it's worth noting that Post Holdings has shown solid revenue growth over the last twelve months as of Q3 2024, with an increase of 18.62%, reflecting the company's ability to expand its sales in a competitive marketplace.
One of the InvestingPro Tips for Post Holdings is that management has been aggressively buying back shares, which could signal confidence in the company's future performance and a potential increase in shareholder value. Additionally, the company has been profitable over the last twelve months, an encouraging sign for investors looking for stable earnings.
For those considering an investment in Post Holdings, there are more InvestingPro Tips available that delve deeper into the company's financial health, stock performance, and future outlook. Currently, there are a total of 8 additional tips listed on InvestingPro for Post Holdings, which can be found at: https://www.investing.com/pro/POST.
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