ST. PAUL, Minn., Jan. 29, 2016 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP, CHSCO, CHSCN, CHSCM, CHSCL) announced today it has filed a registration statement on Form S-1 with the Securities and Exchange Commission ("Commission") to register the issuance of shares of the company's Class B Cumulative Redeemable Preferred Stock, Series 1 (the "Class B Series 1 Preferred Stock") which will be used to redeem approximately $75 million of its patrons' equities. CHS intends to issue such shares of Class B Series 1 Preferred Stock to non-individual "active patrons" who hold 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 these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
There will be no cash proceeds from the issuance of the Class B Series 1 Preferred Stock. However, by issuing shares of Class B Series 1 Preferred Stock in redemption of patrons' equities, CHS will make available for other business purposes cash that otherwise would be used to redeem those patrons' equities.
Holders of the Class B Series 1 Preferred Stock are entitled to receive cash dividends at the rate of $1.96875 per share per year, subject to the CHS Board of Directors' discretion whether to approve the payment of dividends from time to time. The Class B Series 1 Preferred Stock is subject to redemption and has the preferences described in the prospectus included in the registration statement. The redemption of equity with preferred stock will occur at the market price and yield that will be outlined in the final prospectus to be prepared following the SEC's declaration that the S-1 is effective. The prospectus may be obtained from CHS, 5500 Cenex Drive, Inver Grove Heights, Minnesota 55077, Attention: Theresa Egan, Vice President, Accounting and Corporate Controller, or by accessing the Securities and Exchange Commission's website at www.sec.gov.
The Class B Series 1 Preferred Stock is traded on the NASDAQ Global Select Market under the trading symbol "CHSCO."
CHS Inc. (www.chsinc.com) 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, 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.Anyforward–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.