Archer-Daniels-Midland sets pricing in exchange for six notes series

By Jennifer Chiou

New York, Sept. 21 - Archer-Daniels-Midland Co. announced the pricing terms of its private exchange offers for its 7.5% debentures due 2027, 6.75% debentures due 2027, 6.625% debentures due 2029, 7% debentures due 2031, 6.45% debentures due 2038 and 6.95% debentures due 2097.

The company is offering new 4.535% senior debentures due 2042 and, for some series of old debentures, cash.

Archer-Daniels-Midland will issue the following:

• $1,439.34 of the new notes for each $1,000 of the 7.5% debentures;

• $1,349.44 of the new notes for each $1,000 of the 6.75% debentures;

• $1,343.03 of the new notes for each $1,000 of the 6.625% debentures;

• $1,395.49 of the new notes for each $1,000 of the 7% debentures;

• $1,083.67 of the new notes plus $251.02 in cash for each $1,000 of the 6.45% debentures; and

• $1,229.71 of the new notes plus $229.70 in cash for each $1,000 of the 6.95% debentures.

Eligible holders who tender their debentures by the early participation date, 5 p.m. ET on Sept. 21, will receive an early participation premium equal to $30.00 principal amount of new notes per $1,000 principal amount of old debentures, which is included in the payouts above.

As announced, the company expects to settle all tenders received by the early participation date on the third business day after the early participation date. It will also pay accrued interest.

As already reported, the exchange offers are only being made, and copies of the offering documents will only be made available, to holders who are qualified institutional buyers as defined in Rule 144A under the Securities Act or who are not U.S. persons as defined in Regulation S under the Securities Act.

The exchange offers will expire at 11:59 p.m. ET on Oct. 5. The launch date was Sept. 8.

The offers are conditioned on the receipt of tenders for enough old debentures by the early participation date to result in the issuance of $250 million principal amount of new debentures. They are also conditioned on the yield on the reference Treasury, the 4.375% Treasury due May 15, 2014, being not more than 4.15% at the pricing time, which was 11 a.m. ET on Sept. 21. The bid-side yield was 3.185%.

The new debentures have not been registered under the Securities Act or any state securities laws. The information agent is D.F. King & Co., Inc. (800 431-9645 or 212 269-5550).

Archer-Daniels-Midland procures, processes and merchandises agricultural commodities and products and is based in Decatur, Ill.

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