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

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).

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.

Final details of the issue are here. 

OTC Temporary Ticker has not yet been announced.