- Spire (NYSE:SR) announces a private placement with institutional investors of $165M of senior unsecured notes, consisting of $35M of 5-year notes and $130M of 10-year notes.
- Net proceeds will be utilised to fund a portion of the consideration for previously announced pending acquisition of Mobile Gas and Willmut Gas. The issuance and sale of the notes is expected to occur concurrently with or shortly before the closing of the acquisition, but may not occur later than December 31, 2016. If the acquisition for any reason does not close within three business days of the issuance of the notes, on the next business day, the notes will be repaid at par and cancelled. If the acquisition is terminated for any reason prior to issuance of the notes, the notes will not be issued. Depending on the date of issuance and sale, the 5-year notes will bear interest between 2.49% and 2.61%p.a. and the 10-year notes will bear interest between 3.11% and 3.19% p.a. With the completion of the acquisition financing, the company's $275M bridge loan commitment for the acquisition has terminated.
- Press Release