By Lisa Kerner
Charlotte, N.C., Oct. 29 - Land O'Lakes, Inc. will issue and sell $325 million of privately placed notes in three series, according to a form 8-K filed with the Securities and Exchange Commission.
According to Land O'Lakes, the new notes will be issued and sold as follows:
• $155 million principal amount of 6.24% notes due December 2016;
• $85 million principal amount of 6.67% notes due December 2019; and
• $85 million principal amount of 6.77% notes due December 2021.
Lake O'Lakes said the sale will occur on or about Dec. 15.
Proceeds will be used primarily to redeem the company's 8.75% senior unsecured notes due 2011 and its 9% senior secured notes due 2010.
The new notes will be secured by debt issued under the company's CoBank, ACB revolving credit facility and by Land O'Lakes' assets and the assets of some wholly owned domestic subsidiaries, the filing said.
Under the note purchase agreement, Land O'Lakes' ability to incur additional debt, make payments to members, make investments, grant liens and sell assets is restricted.
Land O'Lakes is an Arden Hills, Minn.-based food and agricultural cooperative.
| Issuer: | Land O'Lakes, Inc.
|
| Issue: | New notes
|
| Amount: | $325 million
|
| Pricing date: | Oct. 29
|
| Settlement date: | Dec. 15
|
| Distribution: | Private placement
|
|
|
| 2016 notes
|
| Amount: | $155 million
|
| Maturity: | December 2016
|
| Coupon: | 6.24%
|
|
|
| 2019 notes
|
| Amount: | $85 million
|
| Maturity: | December 2019
|
| Coupon: | 6.67%
|
|
|
| 2021 notes
|
| Amount: | $85 million
|
| Maturity: | December 2021
|
| Coupon: | 6.77%
|
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