Moody’s applies A2 to Cargill notes

Moody's Investors Service said it assigned an A2 rating to Cargill, Inc.'s issuance of $602 million of 4.76% notes due 2045.

Proceeds and cash will be used to fund the exchange offer that was announced by Cargill on Oct. 22.

As investors tendered more bonds than required under the terms of the exchange offer, Cargill has limited the exchange to the following securities: 7.5% unsecured notes due 2026, 6.125% unsecured notes due 2034, 6.125% unsecured notes due 2036 and the 6.625% unsecured notes due 2037. Moody's will maintain ratings on the aforementioned notes as none of these securities have been fully repaid.

The outlook is stable.

"Cargill is taking advantage of the low interest rate environment for investment grade debt to refinance higher cost notes and extend it maturity profile," Moody’s senior vice president John Rogers said in a news release.

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