By Cristal Cody
Chicago, Sept. 7 – Archer-Daniels-Midland Co. sold an upsized $750 million offering of 2.7% 30-year notes (A2/A/A) at 98.479 to yield 2.775%, according to an FWP filing with the Securities and Exchange Commission.
The notes were upsized from an expected $500 million.
A source noted that spread talk was in the Treasuries plus 100 basis points to 105 bps area on Tuesday morning. The notes priced with a spread over Treasuries of 80 bps, low to talk.
The notes have a make-whole call at Treasuries plus 15 bps and then a par call six months before maturity.
Any change-of-control offer would be at 101.
Barclays, BNP Paribas Securities Corp., MUFG, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are listed as joint bookrunners.
Proceeds will be used to pay the redemption price for the full redemption of ADM’s $500 million outstanding 2.75% notes due March 27, 2025. Any remaining proceeds will be used for general corporate purposes, which may include, without limitation, repayment of commercial paper borrowings.
The Chicago-based company processes agricultural commodities and manufactures food and feed ingredients.
| Issuer: | Archer-Daniels-Midland Co.
|
| Issue: | Notes
|
| Amount: | $750 million
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| Maturity: | Sept. 15, 2051
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| Bookrunners: | Barclays, BNP Paribas Securities Corp., MUFG, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | BofA Securities, Inc. and Citigroup Global Markets Inc.
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Faegre Drinker Biddle & Reath LLP
|
| Counsel to underwriters: | Mayer Brown LLP
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| Coupon: | 2.75%
|
| Price: | 98.479
|
| Yield: | 2.775%
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| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps, par call starting March 1, 2051
|
| Change of control: | At 101
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| Trade date: | Sept. 7
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| Settlement date: | Sept. 10
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| Ratings: | Moody’s: A2
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| S&P: A
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| Fitch: A
|
| Distribution: | SEC registered
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| Price talk: | $500 million; Treasuries plus 100 bps to 105 bps area
|
| Cusip: | 039482AC8
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