Post updates guidance, set to begin notes offering
ST. LOUIS — Post Holdings, Inc. said it expects to meet or slightly exceed its previously issued guidance of $200 million to $210 million for adjusted EBITDA in the fiscal year ended Sept. 30.
Adjusted EBITDA represents net earnings excluding income taxes, net interest expense, net other non-operating income/expense, depreciation and amortization, noncash stock-based compensation, nonrecurring cash compensation for retention/severance and accounts receivable servicing fees. It also includes costs related to Post’s separation from Ralcorp Holdings, Inc. and to establish stand-alone systems and processes, mark to market adjustments on economic hedges and intangible asset impairments, if any, and including an estimate of incremental costs Post would have incurred had it been a stand-alone public company during the periods presented.
Separately, Post said it intends to begin a private offering of $200 million in aggregate principal amount of 7.375% senior notes due 2022. The notes are being offered as additional notes under an existing indenture pursuant to which the company previously issued $775 million in aggregate principal amount of 7.375% senior notes due 2022, Post said.
“The notes to be issued in this offering will be equal in right of payment, will vote together with and will constitute part of the same class and be fungible with the existing notes,” Post said. “The notes will be unsecured unsubordinated obligations of the company and will be guaranteed by the company’s subsidiary, Post Foods, L.L.C. The company intends to use the net proceeds from the proposed offering for general corporate purposes which could include pay down of debt and/or acquisitions.”
Post, which makes, markets and distributes branded ready-to-eat cereals in the United States and Canada, earlier this year separated from Ralcorp Holdings, Inc.