ADM Prices Equity Units Offering Of Up To $2 Billion
DECATUR, Ill, May 28 /PRNewswire-FirstCall/ -- Archer Daniels Midland Company (NYSE:ADM) today announced that it has priced its offering of up to $2 billion of equity units. ADM will issue 35,000,000 equity units with a stated amount of $50 per unit and has granted the underwriters an option to purchase up to 5,000,000 additional equity units to cover over-allotments. The equity units carry a total distribution rate of 6.25%, and the threshold appreciation price of the equity units is $47.83, which represents a premium of approximately 20% over the closing price of ADM's common stock of $39.86 on May 28, 2008.
The equity units will initially consist of a contract to purchase ADM common stock and a 5.0% beneficial ownership interest in a $1,000 principal amount 4.70% debenture due June 1, 2041. Under the purchase contract, holders are required to purchase ADM common stock no later than on June 1, 2011. The offering is subject to customary closing conditions and is expected to close on June 3, 2008. ADM intends to use substantially all of the net proceeds from this offering for general corporate purposes, including repayment of short-term indebtedness and investment in long-term growth opportunities.
Citi, J.P. Morgan Securities Inc., Banc of America Securities Inc. and Deutsche Bank Securities Inc. are the joint book-running managers for the offering. This announcement does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of these securities may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained when available from Citi at Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220, telephone (877) 858-5407; and J.P. Morgan Securities Inc. at 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245, Attention: Prospectus Department, telephone (718) 242-8002, email: addressing.services@jpmorgan.com.
About Archer Daniels Midland Company Archer Daniels Midland Company (ADM) is the world leader in BioEnergy and has a premier position in the agricultural processing value chain. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is a leading manufacturer of biodiesel, ethanol, soybean oil and meal, corn sweeteners, flour and other value-added food and feed ingredients. Headquartered in Decatur, Illinois, ADM has over 27,000 employees, more than 240 processing plants and net sales for the fiscal year ended June 30, 2007 of $44 billion. Additional information can be found on ADM's Web site at http://www.admworld.com/. Forward-Looking Statements This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks, uncertainties and other factors, including the current market demand for these types of securities and the securities of ADM and the negotiations between ADM and the underwriters. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. Other risks that could impact the offering are described in detail in the ADM Annual Report on Form 10-K for the fiscal year ended June 30, 2007 as filed with the U.S. Securities and Exchange Commission. All forward-looking statements are based on information currently available to ADM and ADM assumes no obligation to update any such forward-looking statements. First Call Analyst:
CONTACT: ADM Media Relations, +1-217-424-5413, media@admworld.com, or Web site: http://www.admworld.com/
2008-05-28 20:04:43 0372323 PRNEWSWIRE
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