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MGP Ingredients Prices Offering of $175 Million of Convertible Senior Notes Due 2041
ATCHISON, Kan., Nov. 10, 2021 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq: MGPI) (the “Company” or “MGP”), a leading provider of distilled spirits,
About this update from Mgp Ingredients, Inc.
[{"type":"text","content":"ATCHISON, Kan., Nov. 10, 2021 (GLOBE NEWSWIRE) -- MGP Ingredients, Inc. (Nasdaq: MGPI) (the “Company” or “MGP”), a leading provider of distilled spirits, branded spirits, and food ingredient solutions, today announced the pricing of its offering of $175,000,000 aggregate principal amount of 1.875% convertible senior notes due 2041 (the “Notes”) in a previously announced private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The issuance and sale of the Notes are scheduled to settle on November 16, 2021, subject to customary closing conditions. MGP also granted the initial purchasers of the Notes an option to purchase, within a 13-day period beginning on, and including, the date on which the Notes are first issued, up to an additional $26,250,000 aggregate principal amount of the Notes, solely to cover over-allotments. The Notes will be senior, unsecured obligations of MGP and will accrue interest at a rate of 1.875% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2022. Beginning on November 15, 2026, holders will receive contingent interest for certain periods if the trading price of the Notes exceeds a certain threshold. Any contingent interest payable on the Notes will be in addition to the regular interest payable on the Notes. The Notes will mature on November 15, 2041, unless earlier repurchased, redeemed or converted. The Notes will be convertible only upon the occurrence of certain events and during certain periods. MGP will settle conversions of the Notes by paying cash up to the principal amount of such Notes being converted and by paying and/or delivering, as the case may be, cash, shares of MGP’s common stock or a combination of cash and shares of MGP’s common stock, at MGP’s election, in respect of the remainder of the conversion value, if any. The Notes will be guaranteed on a senior unsecured basis by each of MGPI Processing, Inc., MGPI of Indiana, LLC and Luxco, Inc. The initial conversion rate of the Notes is 10.3911 shares of MGP common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $96.24 per share of MGP common stock). The initial conversion price of the Notes represents a premium of approximately 37.5% over the $...