Fitch rates Land O'Lakes preferreds BB

Fitch Ratings said it rates Land O'Lakes, Inc.'s (LOL) offering of an additional $250 million of perpetual preferred stock BB.

The new offering increases the company’s outstanding preferred stock to $565 million.

The outlook is stable.

Net proceeds may be used to pay down outstanding balances under Land O'Lakes’ revolving credit facility, receivables securitization facility and for working capital and general corporate purposes.

The preferred stock ranks junior to the senior debt and capital securities. Fitch said it grants 50% equity credit to Land O'Lakes’ preferred shares after considering the junior ranking, perpetuity, the option to defer dividends, and the cumulative coupon deferral. On or after April 4, 2027, the preferred stock will be redeemable at the option of the company.

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