Agco $150 million convertible talked at 1.75% yield, up 23-31%

By Ronda Fears

Nashville, Dec. 15 - Agco Corp. launched $150 million of 30-year convertible notes talked to yield 1.75% with a 23% to 31% initial conversion premium.

Morgan Stanley & Co. Inc. is bookrunner of the 144A deal, which is scheduled to price after the close Tuesday.

The senior subordinated notes will be non-callable for seven years with puts in years seven, 10, 15, 20 and 25.

A $22.5 million greenshoe is available.

The Duluth, Ga.-based agriculture equipment manufacturer said proceeds will help pay part of the purchase price for its previously announced acquisition of Valtra Corp. from Kone Corp.

On Friday, the companies announced that the European Commission had approved the €600 million sale of the tractor and off-road engine manufacturer unit.

Agco shares closed Monday off 19 cents, or 1.09%, to $17.31.

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