Monsanto Co. (MON), the world’s largest seed company, going to sell $4.5 billion of bonds to fund share repurchases
27 June 2014, 15:00
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The seed producer
announced a $10 billion, accelerated, two-year repurchase plan and
intend to buy $6 billion of shares to boost investor returns after
ending preliminary talks about a takeover of Syngenta AG that would have
cut its taxes.
According to an anonymous source three-, five-, seven-, 10-, 20-, 30-, and 50-year notes can be sold already today.The five-year notes to be sold may yield about a 55 basis-point spread, according to the person.
This would be the first Monsanto’s bond sale since a three-part, $1 billion offering in November.
To fund buyback plan Monsanto plans also to use $1.2 billion of commercial paper and available cash to finance the accelerated stock repurchases, according to a regulatory filing today.
Standard & Poor’s lowered the Monsanto’s rating yesterday to BBB+ from A+. Moody’s also lowered company’s grade, to A3 from A1 yesterday.
According to an anonymous source three-, five-, seven-, 10-, 20-, 30-, and 50-year notes can be sold already today.The five-year notes to be sold may yield about a 55 basis-point spread, according to the person.
This would be the first Monsanto’s bond sale since a three-part, $1 billion offering in November.
To fund buyback plan Monsanto plans also to use $1.2 billion of commercial paper and available cash to finance the accelerated stock repurchases, according to a regulatory filing today.
Standard & Poor’s lowered the Monsanto’s rating yesterday to BBB+ from A+. Moody’s also lowered company’s grade, to A3 from A1 yesterday.
