AGCO stock price again triggers convertibility for 1.75% senior notes

By Susanna Moon

Chicago, Aug. 6 - AGCO Corp. noteholders may convert their 1.75% convertible senior subordinated notes, according to a 10-Q filing with the Securities and Exchange Commission.

The notes are convertible because the closing price of the company's common stock exceeded 120% of the conversion price of $22.36 per share for at least 20 out of the 30 consecutive trading days ended June 30, the filing noted.

The company said it classified the notes as a current liability but believes holders are unlikely to convert the notes because convertible securities typically are not converted before expiration unless they are called for redemption.

If the notes are converted, AGCO said it could repay the notes with available cash on hand and funds from its $300 million multicurrency revolving credit facility.

The company's stock (NYSE: AGCO) closed at $36.75 on Thursday.

The company noted in a 10-Q filing on Aug. 7, 2009 that its stock price during the month of June 2009 triggered convertibility of the notes.

AGCO is a Duluth, Ga., manufacturer and distributor of agricultural equipment and related replacement parts.

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