CHS Inc. (Cenex Harvest States Coop) Prices Preferred Issue

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Giant Coop CHS Inc has sold a new cumulative, redeemable, perpetual preferred issue at 7.50%.  This coupon is higher than the 2 issues sold in 2014 which were at 7.10% and 6.75%–both were reset issues (rate resets after 10 years).

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If you are not familiar with CHS (Cenex Harvest States) they are a $50 billion dollar agricultual cooperative headquartered in Minnesota.  They are a very solid coop with over $1 billion in net income in each of the last couple of years.  Being a cooperative there is no publicly traded common shares–only 5 issues of preferred stock.

We will be buying this issue in the 2014, 2015 Model Portfolios – Blended Income.  Historically these issues have traded very solidly at or above par.

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Final details of the issue are here

OTC Temporary Ticker has not yet been announced.

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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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