ADM talks $300 million 0% exchangeable bonds for Wilmar due 2023 at 102-104, up 20%-25%

By Abigail W. Adams

Portland, Me., Aug. 19 – ADM Ag Holding Ltd. is planning to price $300 million of 0% bonds due 2023 exchangeable for Wilmar Intl. Ltd. shares on Wednesday with price talk for a reoffer price of 102 to 104 to yield negative 1.3% to negative 0.66% and an exchange premium of 20% to 25%, according to a market source.

Citigroup Global Markets Inc. is an active joint bookrunner for the Regulation S offering.

The notes are non-callable for 1.5 years and then subject to a 120% hurdle.

They will be redeemed at par.

The notes will be listed for trade on the Singapore Exchange Ltd.

Concurrently with the exchangeable bonds, the company is selling an aggregate $500 million shares of Wilmar in a block trade agreement with a syndicate of managers.

Price talk for the secondary offering is S$4.40 to S$4.55.

Following the offering, ADM will have an equity interest of at least 20% in Wilmar.

Proceeds will be used for working capital, capital expenditures and possible acquisitions.

ADM Ag is a subsidiary of ADM, a Chicago-based global food processing and commodities trading corporation.

Wilmar is a Singapore-based agribusiness group.

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