ST. PAUL, Minn., April 28, 2015 /PRNewswire/ -- The Board of Directors of CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative, today announced revisions to its non-qualified equity redemption policy affecting the company's eligible cooperative and producer member-owners.
For fiscal 2013 and 2014 the CHS Board of Directors authorized the allocation of a portion of patronage for those years as non-qualified equity, specifying that non-qualified equity would not be included in the company's annual equity redemption program. At its April meeting, the CHS Board of Directors approved a resolution further clarifying the role and handling of non-qualified owner equity, specifying that:
- Non-qualified equity, with the exception of that held by liquidated member cooperatives, is not considered permanent capital on the CHS balance sheet.
- Non-qualified equity held by individual eligible producer-members will be managed in the same manner as qualified equity. As such, estates and producer-members who attain age 70 will be eligible to apply for redemption of non-qualified equity.
- CHS will identify the amount of non-qualified equity redeemed annually to eligible producer-members and periodically, at the discretion of the CHS Board, pay a proportionate amount to eligible member cooperatives on a pro-rata basis.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, animal feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2014, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
SOURCE CHS Inc.