Message #15 From:
NewsBot Date: November 28, 2006 04:35:00 PM
AG News AGCO Prices $175 Million 1.25% Convertible Notes Offering
DULUTH, Ga.--(BUSINESS WIRE)--AGCO Corporation (NYSE:AG), a worldwide manufacturer and distributor of
agricultural equipment, announced today that it has priced its
previously announced public offering of $175 million aggregate principal
amount of 1.25% convertible senior subordinated notes due in 2036 (the “notes”).
AGCO also has granted 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 notes will pay interest
semiannually at a rate of 1.25% per year and will mature on December 15,
2036. The notes will be convertible based on an initial conversion rate
of 24.5525 shares of AGCO’s common stock per
$1,000 principal amount of notes (equivalent to an initial conversion
price of approximately $40.73 per share of common stock).
AGCO estimates net proceeds from the offering at approximately $170.6
million (after deducting underwriting discounts and estimated expenses
of the offering). The offering is expected to close on December 4, 2006,
subject to customary closing conditions. As previously announced, AGCO
intends to use the net proceeds of the offering to repay a portion of
the term loans outstanding under its existing bank credit facility.
Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. are acting 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 the closing
conditions for the offering of the notes may not be satisfied. 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.
