By Angela McDaniels
Tacoma, Wash., June 15 – Archer-Daniels-Midland Co. determined the prices it will pay in its cash tender offer for up to $1 billion of 11 series of debentures and extended the early tender time to 5 p.m. ET on June 30 from 5 p.m. ET on June 12, according to a company news release.
As previously reported, the company is offering to repurchase its outstanding $172,103,000 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 debentures are listed in order of acceptance priority level.
The offer for the 4.479% debentures is subject to a sub-cap of $250 million.
The total consideration for each series of notes is noted in the table below. They were 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 and the fixed spread. The reference yield was determined based on the bid-side price for the applicable reference security at 11 a.m. ET on June 15.
Each total consideration includes a $30.00 early tender premium for each $1,000 principal amount of notes tendered by the early tender date.
Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be July 1.
The tender offers began June 1 and will end at 5 p.m. ET on June 30.
Results so far
As of 5 p.m. ET on June 30, holders had tendered
• $13,559,000, or 7.88%, of the 6.95% debentures due 2097;
• $129,988,000, or 21.66%, of the 5.375% debentures due 2035;
• $216,769,000, or 36.38%, of the 5.765% debentures due 2041;
• $37,299,000, or 8.88%, of the 5.935% debentures;
• $22.28 million, or 12.23%, of the 6.625% debentures due 2029;
• $4,936,000, or 3.99%, of the 6.75% debentures due 2027;
• $35,224,000, or 18.87%, of the 7.5% debentures due 2027;
• $20,127,000, or 10.9%, of the 7% debentures due 2031;
• $26,882,000, or 17.49%, of the 6.45% debentures due 2038;
• $33,254,000, or 11.26%, of the 8.375% debentures due 2017; and
• $312,797,000, or 41.71%, of the 4.479% debentures due 2021.
Because the principal amount of the 4.479% debentures tendered already exceeds the $250 million cap for this series, any 4.479% debentures that are purchased after applying the aggregate purchase price limitation and the acceptance priority levels will be prorated.
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, 212 269-5550 or adm@dfking.com) is the tender and information agent.
Based in Decatur, Ill., ADM is an agricultural products processing company.
| Debentures | Reference Treasury security | Fixed spread | Total consideration
|
| 6.95% debentures due 2097 | 2.5% due Feb. 15, 2045 | 170 bps | $1,438.63
|
| 5.375% debentures due 2035 | 2.5% due Feb. 15, 2045 | 95 bps | $1,181.42
|
| 5.765% debentures due 2041 | 2.5% due Feb. 15, 2045 | 100 bps | $1,262.55
|
| 5.935% debentures due 2032 | 2.5% due Feb. 15, 2045 | 85 bps | $1,246.38
|
| 6.625% debentures due 2029 | 2.125% due May 15, 2025 | 155 bps | $1,288.40
|
| 6.75% debentures due 2027 | 2.125% due May 15, 2025 | 145 bps | $1,289.85
|
| 7.5% debentures due 2027 | 2.125% due May 15, 2025 | 145 bps | $1,346.23
|
| 7% debentures due 2031 | 2.5% due Feb. 15, 2045 | 95 bps | $1,338.26
|
| 6.45% debentures due 2038 | 2.5% due Feb. 15, 2045 | 105 bps | $1,334.42
|
| 8.375% debentures due 2017 | 0.625% due May 31, 2017 | 25 bps | $1,131.43
|
| 4.479% debentures due 2021 | 1.375% due April 30, 2020 | 50 bps | $1,120.94
|
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