Archer-Daniels-Midland wraps tender for $500 million of debentures

By Jennifer Chiou

New York, March 12 - Archer-Daniels-Midland Co. announced the completion of its 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 offer ended at midnight ET on March 11. The offer began on Feb. 11.

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

Because tenders had already been obtained from holders for more than the tender cap, the following debentures 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.

At the end of the offer, the company accepted all $284,559,000 of tenders for the 6.45% debentures, all $154,332,000 of tenders for the 7% debentures and $61,109,000 of the $116,139,000 of tenders for the 7.5% debentures.

At 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% debentures;

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

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

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

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

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

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

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

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

The lead dealer managers were 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. was the co-dealer manager.

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

The agricultural products processor is based in Decatur, Ill.

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