Nufarm (ASX:NUF) raises US$350M to manage debt

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Nufarm (ASX:NUF) raises US$350M to manage debt

More on:
Nufarm Australia, Nufarm Americas Inc., Fitch Ratings, subsidiaries, crop protection solutions
Image source: Tumsasedgars | Megapixl.com

Highlights

  • Nufarm makes US$350 million in bonds maturing in 2030.
  • It announces the pricing by its wholly-owned subsidiaries, Nufarm Australia Ltd and Nufarm Americas Inc.
  • Nufarm wants to apply the net proceeds received from the Notes together with cash on hand to repay amounts outstanding by way of redemption.
  • On Thursday, Fitch Ratings allotted ratings of 'BB' to the proposed US dollar senior unsecured notes to be issued by Nufarm Australia Limited and Nufarm Americas Inc.

ASX-listed Australian company engaged in developing and manufacturing crop protection solutions and seed technologies Nufarm Limited (ASX:NUF) announced on Friday the pricing by its fully-owned subsidiaries, Nufarm Australia Ltd and Nufarm Americas Inc. The pricing declared by the subsidiaries is US$350 million in aggregate principal amount of Senior Unsecured Notes maturing in 2030 in an offering made to qualified institutional purchasers and persons outside the US in offshore transactions.

The Notes will have a fixed rate coupon of 5%. The settlement of the Notes offering is likely to occur in New York on 27 January 2022 (New York time) and is subject to customary closing conditions.

Nufarm wants to apply the net proceeds received from the Notes together with cash on hand to repay amounts outstanding, including accrued and unpaid interest and premium under the current senior unsecured notes on the issue (due to mature in 2026), by way of redemption. 

Meanwhile, NUF was spotted trading 1.725% lower at AU$4.560 per share on ASX at 10:54 AM AEDT.

Bottom Line:  

As per Fitch Ratings, Nufarm occupies a top-10 market position in terms of overall crop protection and seed product sales globally. 

It is to be noted that on Thursday, under a dual-tranche structure, Fitch Ratings allotted ratings of 'BB' to the proposed US dollar senior unsecured notes to be issued by Nufarm Australia Limited and Nufarm Americas Inc.

The proposed notes will be guaranteed by Nufarm and several operating subsidiaries, which together contribute roughly 90% of the Group's consolidated EBITDA. The proceeds from the issue will redeem Nufarm's outstanding US$475 million senior unsecured notes due 2026.

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