ADM sets pricing, calls off part of $500 million tender offer for six note series

By Jennifer Chiou

New York, March 9 - Archer-Daniels-Midland Co. announced pricing in the up to $500 million cash tender offer for the following series of debentures:

• $500 million of 6.45% debentures due January 2038, with a payout of $1,113.75, calculated using the 4.5% Treasury due August 2039 plus a fixed spread of 93 basis points;

• $400 million of 7% debentures due February 2031, with a payout of $1,156.80, calculated using the 4.5% Treasury due August 2039 plus a fixed spread of 100 bps; and

• $343 million of 7.5% debentures due March 2027, with a payout of $1,187.69, calculated using the 4.5% Treasury due August 2039 plus a fixed spread of 105 bps.

The notes are listed in order of priority acceptance level, and pricing was calculated at 2 p.m. ET on March 9.

Because tenders have already been obtained from holders for more than the tender cap, the following notes series were terminated from the original tender offer:

• $297.5 million of 6.625% debentures due May 2029;

• $200 million of 6.75% debentures due December 2027; and

• $295.3 million of 8.375% debentures due April 2017.

As of 5 p.m. ET on Feb. 22, the early tender time, investors had tendered the following amounts:

• $284,472,000, or 56.89%, of 6.45% notes;

• $152,787,000, or 38.20%, of 7% notes;

• $116,099,000, or 33.85%, of 7.5% notes;

• $83,262,000, or 27.99%, of 6.625% notes;

• $39,726,000, or 19.86%, of 6.75% notes; and

• $90,033,000, or 30.49%, of 8.375% notes.

An ADM spokesperson previously said the company will fund the offer using cash on hand.

All payouts include a $30.00 early tender payment per $1,000 principal amount for securities tendered by the early tender time. Holders will also receive accrued interest.

The offer ends at midnight ET on March 11. The offer began on Feb. 11.

Within the offer cap, tenders will be accepted on a pro rata basis if necessary. The cap in the offer was previously raised from $400 million.

The lead dealer managers are Barclays Capital Inc. (800 438-3242 or call collect 212 528-7581), BNP Paribas Securities Corp. (212 841-3059) and HSBC Securities (USA) Inc. (888 HSBC-4LM or call collect 212 525-5552). Mitsubishi UFJ Securities (USA), Inc. is the co-dealer manager.

D.F. King & Co., Inc. (800 659-5550 or call collect 212 269-5550) is the depositary and information agent.

The agricultural products processor is based in Decatur, Ill.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.