The company priced the 9 million share offering at $46.25 a share. The Laclede Group also priced an offering of 2.5 million equity units, or $125 million in equity units, at $50 a unit. Each units consists of a contract to buy common stock in the future and a 5% undivided beneficial ownership interest in a 2014 Series A 2.00% remarketable junior subordinated note due 2022 with a principal amount of $1,000.
The Laclede Group expects proceeds of $522 million in aggregate, and will use them to fund a portion of the cash used in the pending acquisition of Alabama Gas Company.
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TheStreet Ratings team rates LACLEDE GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LACLEDE GROUP INC (LG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."