ST. PAUL, Minn., April 1, 2016 /PRNewswire/ -- CHS Inc.
(NASDAQ: CHSCP, CHSCO, CHSCN, CHSCM, CHSCL) today announced the
issuance, on March 31, 2016, of
2,693,195 shares of its Class B Cumulative Redeemable Preferred
Stock, Series 1 (the "Class B Series 1 Preferred Stock") to redeem
about $77 million of qualified CHS
equity.
The amount of CHS qualified equity redeemed with each share of
Class B Series 1 Preferred Stock was $28.50, equal to the closing price for one share
of the Class B Series 1 Preferred Stock on March 23, 2016. The shares of Class B Series 1
Preferred Stock were issued to 1,170 eligible member cooperatives
and associations.
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.
"This distribution allows CHS to deliver direct economic value
to our owners by redeeming 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
maintaining a strong balance sheet and taking a long-term view in
operating its businesses on behalf of CHS owners.
To be eligible for the redemption, member cooperatives and
associations must have been "active patrons" who held qualified
capital equity certificates in an amount equal to or greater than
$500. "Active patrons" are
non-individual patrons who have done business with CHS in the past
five fiscal years.
A registration statement relating to the issued shares of Class
B Series 1 Preferred Stock has been filed with the Securities and
Exchange Commission and became effective on March 31, 2016. The specific terms of the
issuance of the shares of Class B Series 1 Preferred Stock are
described in a prospectus filed with the Securities and Exchange
Commission in connection with the issuance. The offering of shares
of Class B Series 1 Preferred Stock was made only by means of a
written prospectus that forms a part of the registration statement,
copies of which may be obtained at the Securities and Exchange
Commission's website at http://www.sec.gov or from CHS,
Attention: Theresa Egan, Vice
President, Accounting and Corporate Controller, 5500 Cenex Drive,
Inver Grove Heights, Minnesota
55077 or via telephone at (651) 355-6000.
This document contains, CHS publicly available documents may
contain, and CHS officers, directors and other representatives may
from time to time make, "forward–looking statements" within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward–looking
statements can be identified by words such as "anticipate,"
"intend," "plan," "goal," "seek," "believe," "project," "estimate,"
"expect," "strategy," "future," "likely," "may," "should," "will"
and similar references to future periods. Forward–looking
statements are neither historical facts nor assurances of future
performance. Instead, they are based only on CHS's current beliefs,
expectations and assumptions regarding the future of its
businesses, financial condition and results of operations, future
plans and strategies, projections, anticipated events and trends,
the economy and other future conditions. Because forward–looking
statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict and many of which are outside of the control
of CHS. CHS's actual results and financial condition may differ
materially from those indicated in the forward–looking statements.
Therefore, you should not place undue reliance on any of these
forward–looking statements. Important factors that could cause
CHS's actual results and financial condition to differ materially
from those indicated in the forward–looking statements are
discussed or identified in CHS's public filings made with the U.S.
Securities and Exchange Commission, including in the "Risk Factors"
discussion in Item 1A of the CHS Annual Report on Form 10–K for the
fiscal year ended August
31, 2015.Any forward–looking statements made by CHS
or its representatives in this document are based only on
information currently available to CHS and speak only as of the
date on which the statement is made. CHS undertakes no obligation
to publicly update any forward–looking statement, whether written
or oral that may be made from time to time, whether as a result of
new information, future developments or otherwise, except as
required by applicable law.
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SOURCE CHS Inc.