ADM begins tenders for up to $1 billion of 11 note series

By Susanna Moon

Chicago, June 1 – Archer-Daniels-Midland Co. began a cash tender offer for up to $1 billion of 11 series of notes, according to an 8-K filing with the Securities and Exchange Commission.

The company is offering to repurchase its outstanding $172,103,000 of 6.95% debentures due 2097; $600 million 5.375% debentures due 2035; $595,796,000 5.765% debentures due 2041; $420,208,000 5.935% debentures due 2032; $182,213,000 6.625% debentures due 2029; $123.58 million 6.75% debentures due 2027; $186,668,000 7.5% debentures due 2027; $184.58 million 7% debentures due 2031; $153,683,000 6.45% debentures due 2038; $295.3 million 8.375% debentures due 2017; and $750 million 4.479% debentures due 2021.

The offer for the 4.479% debentures includes a sub-cap of $250 million.

The total purchase will be calculated based on the present value of future payments on the debentures discounted to the settlement date at a rate equal to the sum of the yield to maturity for the reference security, according to a company notice.

Pricing will be set using the bid-side price at 11 a.m. ET on June 15 plus a fixed spread as follows, with the notes listed in order of priority acceptance level:

• 6.95% debentures due 2097 will be priced using the 2.5% Treasury note due Feb. 15, 2045 plus 170 basis points;

• 5.375% debentures due 2035 using 2.5% Treasury note due Feb. 15, 2045 plus 95 bps;

• 5.765% debentures due 2041 using 2.5% Treasury note due Feb. 15, 2045 plus 100 bps;

• 5.935% debentures due 2032 using 2.5% Treasury note due Feb. 15, 2045 plus 85 bps;

• 6.625% debentures due 2029 using 2.125% Treasury note due May 15, 2025 plus 155 bps;

• 6.75% debentures due 2027 using 2.125% Treasury note due May 15, 2025 plus 145 bps;

• 7.5% debentures due 2027 using 2.125% Treasury note due May 15, 2025 plus 145 bps;

• 7% debentures due 2031 using 2.5% Treasury note due Feb. 15, 2045 plus 95 bps;

• 6.45% debentures due 2038 using 2.5% Treasury note due Feb. 15, 2045 plus 105 bps;

• 8.375% debentures due 2017 using 0.625% Treasury note due May 31, 2017 plus 25 bps; and

• 4.479% debentures due 2021 using 1.375% Treasury note due April 30, 2020 plus 50 bps.

The hypothetical total purchase price for each $1,000 principal amount will be $1,506.01 for the 6.95% debentures, $1,216.39 for the 5.375% debentures, $1,305.16 for the 5.765% debentures, $1,279.04 for the 5.935% debentures, $1,319.66 for the 6.625% debentures, $1,318.78 for the 6.75% debentures, $1,374.53 for the 7.5% debentures, $1,369.81 for the 7% debentures, $1,375.04 for the 6.45% debentures, $1,132.97 for the 8.375% debentures and $1,133.08 for the 4.479% debentures.

The total purchase price includes a $30.00 early tender premium for each $1,000 principal amount of notes tendered 5 p.m. ET on June 12, the early tender date.

Holders who tender their notes after the early tender deadline will receive the total amount less the early premium.

The tender offers will end at 5 p.m. ET on June 30. Settlement is expected to occur July 1.

Tendered notes may be withdrawn by 5 p.m. ET on June 12.

The tender offers are subject to a financing condition.

Barclays (800 438-3242 or 212 528-7581), BofA Merrill Lynch (888 292-0070), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and J.P. Morgan Securities LLC (800 834-4666 or 212 834-4811) are the lead dealer managers. D.F. King & Co., Inc. (866 342-8290 or 212 269-5550) or at adm@dfking.com) is the tender and information agent.

Based in Decatur, Ill., ADM is an agricultural products processing company.

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