Corn Products plans refinancing or repayment of 8.45% senior notes

By Jennifer Chiou

New York, May 1 - Corn Products International, Inc. expects to refinance its $158 million of 8.45% senior notes due Aug. 15, 2009 prior to maturity, according to a 10-Q filing with the Securities and Exchange Commission.

In the event market conditions do not provide appropriate opportunities, the company said it plans to use its revolving credit facility to fund the repayment of the notes.

Corn Products said that if it does not issue new notes, it may be required to reclassify an unrealized gain or loss associated with its $50 million Treasury Lock Agreement.

The T-Lock is designated as a hedge of the variability in cash flows associated with future interest payments caused by market fluctuations in the benchmark interest rate between the time the T-Lock was entered and the time the debt is priced, the filing said. It is accounted for as a cash flow hedge.

Corn Products is a corn refiner based in Westchester, Ill.

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