ST. LOUIS - Spire Inc. (NYSE: NYSE:SR), a major natural gas company, has announced the pricing of a $350 million senior notes offering. The offering consists of 5.30% Senior Notes due 2026, with the company and certain securityholders each selling $175 million worth of notes.
The proceeds from Spire's sale are earmarked for repaying existing debt and general corporate purposes, while the company will not receive any proceeds from the securityholders' sales. The closing of the offering is anticipated on February 12, 2024, conditional upon customary closing requirements.
In a concurrent move, Spire has successfully remarketed $175 million of its 2021 Series A 0.75% Remarketable Senior Notes due 2026, with the interest rate reset to 5.19% following the remarketing.
The proceeds will be used to purchase short-term U.S. Treasury securities, which will secure stock purchase obligations for the holders of the Corporate Units. This remarketing is also expected to conclude on February 12, 2024, subject to standard closing conditions.
The joint book running managers for the offering include Wells Fargo (NYSE:WFC) Securities, Mizuho, and Morgan Stanley (NYSE:MS). The offering will be conducted through a prospectus supplement and an accompanying prospectus, available upon request from the managing financial institutions.
Spire, serving approximately 1.7 million homes and businesses, operates in Alabama, Mississippi, and Missouri and is involved in various natural gas-related businesses, including Spire Marketing and Spire Midstream. The company emphasizes its commitment to growth and innovation in the energy sector.
InvestingPro Insights
As Spire Inc. makes strategic financial maneuvers with its senior notes offering and remarketing, investors may find the latest data from InvestingPro particularly insightful. With a market capitalization of $3.19 billion, Spire operates with a significant debt burden, an aspect that is crucial for stakeholders to monitor, especially in light of the company's recent activities aimed at debt management. The company's commitment to shareholder returns is evidenced by a robust dividend yield of 5.12%, supported by a history of dividend growth, with the latest increase being 4.86%.
InvestingPro Tips indicate that Spire has maintained dividend payments for an impressive 54 consecutive years, showcasing a strong track record of financial commitment to its shareholders. Additionally, analysts have expressed confidence in the company's financial outlook, with two analysts revising their earnings upwards for the upcoming period. This optimism is further bolstered by Spire's profitability over the last twelve months, a reassuring sign for potential investors.
For those interested in deeper analytics and further InvestingPro Tips, Spire's dedicated page on InvestingPro offers additional insights. Currently, there are over 5 additional tips available, which could be of significant value when evaluating the company's financial health and investment potential. With the InvestingPro subscription now on a special New Year sale with discounts of up to 50%, it's an opportune time to access these insights. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
Investors may also note the adjusted P/E ratio for Spire as of Q1 2024 stands at 16.17, which provides a measure of the company's earnings relative to its share price. With a forward-looking approach, these metrics and insights could be instrumental in making informed decisions regarding Spire's financial instruments and overall investment attractiveness.
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