ADM boosts tender cap in offer for its six note series to $500 million

By Susanna Moon

Chicago, Feb. 23 - Archer Daniels Midland Co. said it increased the maximum principal amount of notes it will buy in its cash tender offer for the following series of debentures to $500 million from $400 million:

• $500 million of 6.45% debentures due January 2038, with a payout 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 calculated using the 4.5% Treasury due August 2039 plus a fixed spread of 100 bps;

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

• $297.5 million of 6.625% debentures due May 2029, with a payout calculated using the 4.5% Treasury due August 2039 plus a fixed spread of 100 bps;

• $200 million of 6.75% debentures due December 2027, with a payout calculated using the 4.5% Treasury due August 2039 plus a fixed spread of 100 bps; and

• $295.3 million of 8.375% debentures due April 2017, with a payout calculated using the 3.375% Treasury due November 2019 plus a fixed spread of 42 bps.

The notes are listed in order of priority acceptance level.

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 will include a $30 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.

Pricing will be calculated at 2 p.m. ET on March 9.

Within the offer cap, tenders will be accepted on a pro rata basis if necessary.

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.