New Issue: Agco sells upsized $175 million convertibles at 1.75%, up 31%

Nashville, Dec. 17 - Agco Corp. sold an upsized $175 million of 30-year convertible notes at par to yield 1.75% with a 31% initial conversion premium via lead manager Morgan Stanley & Co. Inc.

The issue, which was increased from $150 million, sold at the aggressive end of price talk for a 1.75% coupon and 23% to 31% initial conversion premium.

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

The Duluth, Ga.-based agriculture equipment manufacturer said proceeds will help pay part of the purchase price for its previously announced €600 million acquisition of Valtra Corp., the tractor and off-road engine manufacturer unit of Kone Corp.

Terms of the deal are:

Issuer:	Agco Corp.
Issue:	Convertible senior subordinated notes
Bookrunner:	Morgan Stanley & Co. Inc.
Amount:	$175 million, upped from $150 million
Greenshoe:	$26.25 million, upped from $22.5 million
Maturity:	Dec. 15, 2033
Coupon:	1.75%
Price:	Par
Yield:	1.75%
Conversion premium:	31%
Conversion price:	$22.36
Conversion ratio:	44.7193
Call:	Non-callable for 7 years
Put:	In years 7, 10, 15, 20 and 25
Price talk:	1.75%, up 23-31%
Pricing date:	Dec. 16, after the close
Settlement date:	Dec. 23
Distribution:	Rule 144A

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