By Susanna Moon
Chicago, Oct. 15 - Archer-Daniels-Midland Co. said investors tendered $567,883,000 of notes in the private exchange offers that ended at 11:59 p.m. ET on Oct. 12 and that it accepted all of the tendered notes.
The amount of tendered notes was more than the $540 million cap set for the offers, but ADM accepted additional tendered notes under its right under federal securities laws to accept up to an additional 2% of the outstanding notes without extending the exchange offers, according to a company press release.
The company plans to settle the offer on Oct. 16.
As noted, holders tendered $566,644,000 of notes by 5 p.m. ET on Sept. 27, the early participation date.
The breakdown for final tally, as compared with the results by the early tender date, is as follows:
• $3.5 million of the $175,603,000 outstanding 6.95% debentures due 2097, unchanged;
• $404,204,000 of the $1 billion 5.765% debentures due 2041, up from $403,074,000;
• $9,074,000 of the $193,654,000 7% debentures due 2031, unchanged;
• $4,144,000 of the $157,827,000 6.45% debentures due 2038, unchanged;
• $79,792,000 of the $500 million 5.935% debentures due 2032, up from $79,766,000;
• $14,891,000 of the $197,104,000 6.625% debentures due 2029, unchanged;
• $35,123,000 of the $221,791,000 7.5% debentures due 2027, up from $35.04 million; and
• $17,155,000 of the $140,735,000 6.75% debentures due 2027, unchanged.
The notes are listed in priority acceptance level, beginning with a priority acceptance level of 1 for the 5.765% notes.
The offer cap was lowered on Sept. 28 from the $600 million cap at the start of the offers on Sept. 14.
Also, the exchange offer for its 6.95% debentures due 2097 was amended so that the total exchange price will be payment for all of the notes tendered by offer expiration. Holders will receive the $30.00 premium per $1,000 principal amount regardless of when the notes are tendered in the offer, as previously noted.
Pricing set
As reported, pricing was set at 2 p.m. ET on Sept. 27 using the bid-side yield of the 3% U.S. Treasury due May 15, 2042 plus a fixed spread, as set out in the table below. The bid-side yield was 2.816%.
The coupon on the new debentures will be 4.016%.
The total exchange price includes $30 per $1,000 principal amount of notes tendered by the early deadline except in the case of the 6.95% debentures due 2097 as noted earlier.
ADM previously said it was conducting the offers to exchange higher-coupon debt for lower-coupon debt and an additional payment.
The offers were conditioned on the receipt of tenders for enough securities so that $250 million of new debentures will be issuable.
Another condition was that the yield on the reference 3% Treasury due May 15, 2042 may neither be less than 2.5% nor more than 3.6% at pricing. The 6.95% debentures, however, had a different range: 2.67% to 3.34%.
The information agent is D.F. King & Co., Inc. (800 431-9645 or 212 269-5550).
Pricing details
| Notes | Fixed spread | Pricing yield | Exchange price | Total price | New notes | Cash
|
| 6.95% debentures due 2097 | 150 basis points | 4.316% | $1,564.12 | $1,594.12 | $1,386.17 | $207.95
|
| 5.765% debentures due 2041 | 105 bps | 3.866% | $1,295.42 | $1,325.42 | $1,000.00 | $325.42
|
| 7% debentures due 2031 | 65 bps | 3.466% | $1,445.72 | $1,475.72 | $1,071.35 | $404.37
|
| 6.45% debentures due 2038 | 90 bps | 3.716% | $1,415.25 | $1,445.25 | $1,133.57 | $311.68
|
| 5.935% debentures due 2032 | 70 bps | 3.516% | $1,314.83 | $1,344.83 | $1,000.00 | $344.83
|
| 6.625% debentures due 2029 | 55 bps | 3.366% | $1,380.78 | $1,410.78 | $1,000.00 | $410.78
|
| 7.5% debentures due 2027 | 35 bps | 3.166% | $1,468.43 | $1,498.43 | $1,000.00 | $498.43
|
| 6.75% debentures due 2027 | 40 bps | 3.216% | $1,391.42 | $1,421.42 | $1,000.00 | $421.42
|
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