ST. LOUIS, April 3, 2017 /PRNewswire/ -- Spire Inc. (NYSE:
SR) today issued 2,504,700 shares of its common stock related to
the conversion of equity units that were issued in June 2014 as part of the funding for the
acquisition of Alabama Gas Corporation (Alagasco). We received
approximately $142 million in net
proceeds as a result of the transaction, and we intend to use the
funds to repay Spire Inc. indebtedness.
"Our planned equity issuance today marks the completion of a
very successful financing of the Alagasco acquisition. At the front
end in 2014, the mandatory convertible equity unit structure
provided the best financing execution and pricing. Today we were
able to issue fewer common shares as we, our investors and
customers all benefitted from the significant value we have created
at Spire over the last three years," said Steve Rasche, executive vice president and chief
financial officer of Spire.
Today's share issuance is in settlement of forward purchase
contracts underlying the 2,875,000 equity units issued at
$50 per unit. The contracts call for
the units to be converted to up to 2,504,700 shares of common stock
at a rate of 0.8712 shares per unit, with fractional shares settled
in cash. The conversion rate is based on the achievement of at
least 25 percent price appreciation in the value of Spire common
stock shares since the units were issued. The purchase was funded
by proceeds from the successful remarketing on February 27, 2017, of the junior subordinated
notes that constituted a component of the units.
About Spire
At Spire Inc. (NYSE: SR) we believe energy
exists to help make people's lives better. It's a simple idea, but
one that's at the heart of our company. Every day we serve 1.7
million customers, making us the fifth-largest publicly traded
natural gas company in the country. We help families and business
owners fuel their daily lives through our gas utilities—Alagasco,
Laclede Gas, Missouri Gas Energy, Mobile Gas and Willmut Gas. Our
non-utility operations include Spire Marketing, which provides
natural gas marketing and related services. We are committed to
transforming our business and pursuing growth by 1) growing our gas
utility business through prudent infrastructure upgrades and
organic growth initiatives, 2) acquiring and integrating gas
utilities, 3) modernizing our gas assets and 4) investing in
innovation.
Investor Contact:
Scott W. Dudley Jr.
314-342-0878
Scott.Dudley@SpireEnergy.com
Media Contact:
Jessica B. Willingham
314-342-3300
Jessica.Willingham@SpireEnergy.com
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SOURCE Spire Inc.