ADM Refinances Debt with $750 Million Notes Issuance

Rhea-AI Summary

ADM has successfully completed the issuance of $750 million in 2.700% notes due 2051. The funds will primarily be allocated to redeem $500 million of existing 2.750% notes due March 27, 2025. Remaining proceeds will support general corporate purposes, including commercial paper repayments. As of June 30, 2021, ADM reported $0.9 billion in cash and equivalents, $7.5 billion in marketable inventories, and $8.6 billion in available credit capacity. This announcement does not constitute an offer to sell securities.

Positive

• Successfully raised $750 million through notes issuance.
• Proceeds will help in redeeming $500 million of existing debt, improving financial standing.
• Strong liquidity position with $0.9 billion in cash and equivalents, $7.5 billion in inventories, and $8.6 billion in available credit.

Negative

• None.

CHICAGO--(BUSINESS WIRE)-- ADM (NYSE: ADM) announced today that it has closed on $750 million of 2.700% notes due 2051.

Proceeds from the issuance will be used to pay the redemption price associated with the full redemption of $500 million of ADM’s outstanding 2.750% notes due March 27, 2025. Any remaining net proceeds will be used for general corporate purposes, which may include, without limitation, repayment of commercial paper borrowings.

At the end of June 30, 2021, ADM had $0.9 billion of cash and cash equivalents, $7.5 billion of readily marketable inventories, and available credit capacity of $8.6 billion.

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any of the notes or any other securities, nor will there be any offer, solicitation or sale of the notes or any other securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering was made only by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained by calling Barclays Capital Inc. toll-free at (888) 603-5847; BNP Paribas Securities Corp. toll-free at (800) 854-5674 or MUFG Securities Americas Inc. toll-free at (877) 649-6848.

Forward-Looking Statements

Some of the above statements constitute forward-looking statements. ADM’s filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.

About ADM

At ADM, we unlock the power of nature to provide access to nutrition worldwide. With industry-advancing innovations, a complete portfolio of ingredients and solutions to meet any taste, and a commitment to sustainability, we give customers an edge in solving the nutritional challenges of today and tomorrow. We’re a global leader in human and animal nutrition and the world’s premier agricultural origination and processing company. Our breadth, depth, insights, facilities and logistical expertise give us unparalleled capabilities to meet needs for food, beverages, health and wellness, and more. From the seed of the idea to the outcome of the solution, we enrich the quality of life the world over. Learn more at www.adm.com.

Source: Corporate Release

View source version on businesswire.com: https://www.businesswire.com/news/home/20210910005318/en/

ADM Media Relations

Jackie Anderson

media@adm.com

312-634-8484

Source: ADM

FAQ

What did ADM announce in their press release?

ADM announced the closing of $750 million in 2.700% notes due 2051.

How will the proceeds from ADM's notes issuance be used?

The proceeds will primarily be used to redeem $500 million of existing notes due March 27, 2025.

What is ADM's cash position as of June 30, 2021?

As of June 30, 2021, ADM reported $0.9 billion in cash and cash equivalents.

What is ADM’s available credit capacity?

ADM has an available credit capacity of $8.6 billion.