Laclede: Proposed Offering Of Common Stock, Equity Units

(RTTNews) - Gas utility Laclede Group Inc (LG) said Tuesday it plans to commence a registered underwritten public offering of up to 9 million shares of its common stock. Also the company plans to commence a registered underwritten public offering of $125 million in equity units. Each equity unit will be issued in a stated amount of $50 and will consist of a contract to purchase common stock in the future and a 1/20, or 5%, undivided beneficial ownership interest in a remarketable junior subordinated note due 2022 having a principal amount of $1,000.

The company expects to grant the underwriters a 30-day option to purchase up to 1.35 million additional shares of the company's common stock and a 13-day option to purchase up to $18.8 million in additional equity units.

The company intends to use the net proceeds from the offerings primarily to fund a portion of the cash consideration payable in connection with the pending acquisition of Alabama Gas Corp.