Spire Issues 2.5 Million Common Shares

Spire Issues 2.5 Million Common Shares

PR Newswire

ST. LOUIS, April 3, 2017

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
[email protected]

Media Contact:
Jessica B. Willingham
314-342-3300
[email protected]

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SOURCE Spire Inc.

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