CHS Announces More Preferred Stock Issuance

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CHS, the giant Minnesota agricultural cooperative, has announced the registration of 8,000,000 Class B, Series 1 shares.  This is NOT a new issue, but now trades as ticker CHSCO with a 7.875% coupon.   CHSCO may trade down somewhat in the next couple of days as news of the share issuance becomes more widespread (currently the shares are off 36 cents–a drop of more than a dollar would attract our interest).

These shares are all being issued to the patrons of the cooperative as their patronage equity (i.e. cooperatives pay their patrons an annual payment–representing their share of profits).  

This transaction keeps money in the bank that CHS would have otherwise paid out to their patrons.


The issue detail is here.


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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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