Archer Daniels Midland Announces Commencement Of Private Exchange Offers

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9/14/2012 4:43 PM ET

Archer Daniels Midland Co. (ADM: Quote) announced the commencement of a private offer to exchange up to $600 million of its outstanding 6.95% Debentures due 2097, 5.765% Debentures due 2041, 7.00% Debentures due 2031, 6.45% Debentures due 2038, 5.935% Debentures due 2032, 6.625% Debentures due 2029, 7.50% Debentures due 2027, and 6.75% Debentures due 2027 for new senior debentures due 2043 and cash.

The Exchange Offers are subject to certain conditions, including the requirement that a sufficient principal amount of Old Debentures has been validly tendered and not validly withdrawn such that a minimum of $250 million aggregate principal amount of New Debentures will be issuable in exchange for such Old Debentures on the Settlement Date and that the yield on the Reference Treasury is not less than 2.5% or more than 3.6% at the Pricing Time, which is 2:00 p.m., New York City time, on September 27, 2012 , except that in the case of the Exchange Offer for the 6.95% Debentures due 2097, the yield on the Reference Treasury may not be less than 2.67% or more than 3.34% at the Pricing Time.

The "Settlement Date" will be promptly after the Expiration Date, which is 11:59 p.m., New York City time, on October 12, 2012, and is expected to be on the second business day after the Expiration Date. The "Reference Treasury" is the 3.00% United States Treasury due May 15, 2042.

Subject to the Exchange Limit, Eligible Holders who validly tender and who do not validly withdraw their Old Debentures prior to 5:00 p.m., New York City time, on September 27, 2012, subject to any extension by ADM, will be eligible to receive an early participation premium equal to $30 per $1,000 principal amount of Old Debentures.

The company said that tenders of Old Debentures in the Exchange Offers may be validly withdrawn at any time at or prior to 5:00 p.m., New York City time on September 27, 2012.

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by RTT Staff Writer

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