CHS stock sale may fund Spiritwood plant
CHS Inc. is offering nearly 17 million shares of stock with a possible intended purpose of partially funding the anticipated construction of a nitrogen fertilizer manufacturing plant in Spiritwood, according to Lani Jordan, director of corporate communications for CHS.
Jordan said the company is required to indicate the possible use for the funds by the U.S. Securities and Exchange Commission when offering stock for sale. The listed use of the funds is not binding on the company.
“This indicates what the stock may be used for,” she said. “Obviously the CHS board has not made the go-forward decision yet.”
CHS announced plans to construct a nitrogen fertilizer plant at Spiritwood on Sept. 18, 2012. Costs were originally estimated at $1.2 billion. More recent estimates have the plant’s costs at about $1.8 billion. A final board decision concerning the construction of the plant is anticipated in the second quarter of the year, which begins April 1.
This sale of shares is anticipated to raise about $406 million, Jordan said. It follows a previous sale of stock in September, which had a stated use of updating and expanding the CHS oil refinery in Kansas.
“We’ve had excellent results with our stock sales,” Jordan said. “They have been well-received in the marketplace.”
Sun reporter Keith Norman can be reached at 701-952-8452 or by email at email@example.com