By Kenneth Lim
Boston, Feb. 16 - Archer Daniels Midland Co. priced $1.15 billion of seven-year convertible senior notes at the rich end of talk on Thursday after the market closed, at a coupon of 0.875% and an initial conversion premium of 22.5%.
The convertibles were offered at par. They were talked at a coupon of 0.875% to 1.375% and an initial conversion premium of 17.5% to 22.5%
The size of the deal includes a $150 million over-allotment option that was immediately exercised.
Citigroup, JP Morgan and Merrill Lynch were the bookrunners of the Rule 144A offering.
The convertibles have a contingent conversion hurdle at 140% of the conversion price.
The notes are non-callable and may not be put.
There is dividend and takeover protection.
The deal has a net-share settlement feature.
Archer Daniels Midland, a Decatur, Ill.-based processor of agricultural products, said it will concurrently buy back up to $400 million of its own stock using the proceeds of the deal. The proceeds will also be used to fund convertible note hedge and warrant transactions and for general purposes.
| Issuer: | Archer Daniels Midland Co.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Citigroup, JP Morgan and Merrill Lynch
|
| Amount: | $1.15 billion, including $150 million greenshoe already exercised
|
| Greenshoe: | $150 million, already exercised
|
| Maturity: | Feb. 15, 2014
|
| Coupon: | 0.875%
|
| Price: | Par
|
| Yield: | 0.875%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $43.79
|
| Conversion ratio: | 22.8343
|
| Contingent conversion: | 140%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 0.875%-1.375%, up 17.5%-22.5%
|
| Pricing date: | Feb. 15 after the close
|
| Settlement date: | Feb. 22
|
| Distribution: | Rule 144A
|
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