Message #14 From:
NewsBot Date: November 27, 2006 02:02:00 PM
AG News AGCO Announces Proposed Convertible Notes Offering
DULUTH, Ga.--(BUSINESS WIRE)--AGCO Corporation (NYSE:AG), a worldwide manufacturer and distributor of
agricultural equipment, announced today that, subject to market
conditions and other factors, it plans to offer $175 million aggregate
principal amount of convertible senior subordinated notes due 2036 (the “notes”)
through a public offering. As part of the offering, AGCO will grant the
underwriters a 30-day option, solely to cover over-allotments, to
purchase up to an additional $26.25 million aggregate principal amount
of the notes. The interest rate, conversion price and other terms of the
notes will be determined by negotiations between AGCO and the
underwriters.
AGCO announced that it expects to use the net proceeds from the offering
of the notes to repay a portion of the term loans outstanding under its
existing bank credit agreement.
Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. will act as
joint book-running managers for the offering of the notes. Rabo
Securities USA, Inc. and Lazard Capital Markets LLC are acting as
co-managers for the offering.
The offering is being made pursuant to AGCO’s
effective shelf registration statement filed with the Securities and
Exchange Commission on November 27, 2006 by means of a separate
prospectus supplement. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be any
sale of, any securities in any state in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such state. A copy of the prospectus
supplement relating to the offering may be obtained by contacting Morgan
Stanley & Co. Incorporated, 180 Varick Street 2/F, New York, NY 10014
(telephone: 1-866-718-1649, email: prospectus@morganstanley.com)or Goldman, Sachs & Co., Attn: Prospectus Dept., 85 Broad Street,
New York, NY 10004 (fax: 212-902-9316, email: prospectus-ny@ny.email.gs.com).
Founded in 1990, AGCO Corporation, headquartered in Duluth, Georgia, is
a global manufacturer of agricultural equipment and related replacement
parts. AGCO offers a full product line including tractors, combines, hay
tools, sprayers, forage, tillage equipment and implements, which are
distributed through more than 3,600 independent dealers and distributors
in more than 140 countries worldwide. AGCO products include the
following well-known brands: AGCO®,
Challenger®, Fendt®,
Gleaner®, Hesston®,
Massey Ferguson®,
New Idea®, RoGator®,
Spra-Coupe®,
Sunflower®,
Terra-Gator®, Valtra®,
and White™Planters.
AGCO provides retail financing through AGCO Finance.
Forward-looking statements:
Statements made in this press release, including those related to AGCO’s
plans to issue the notes and its application of the proceeds from the
notes, are forward-looking statements. These statements involve risks
and uncertainties that may cause actual results to differ materially
from those set forth in these statements. Among other things market
interest in the notes may be greater or less than expected. These
factors are not intended to be an all-encompassing list of risks and
uncertainties that may affect AGCO’s
business. Additional information regarding these and other factors can
be found in AGCO’s reports filed with the
Securities and Exchange Commission, including its Annual Report on Form
10-K for the year ended December 31, 2005. AGCO disclaims any obligation
to update any forward-looking statements.
