ADM, on Friday, March 27, closed on a $1.5 billion notes offering, comprised of $0.5 billion aggregate principal amount of 2.75% notes due 2025 and $1.0 billion aggregate principal amount of 3.25% notes due 2030.
“We are delighted with the reception of the market to this bond offering,” says CFO Ray Young. “The strong investor demand, combined with our single A credit ratings, are compelling evidence of the continued confidence the financial and credit markets have in ADM.”
Proceeds from the issuance will be used for general corporate purposes, including the possible reduction of short-term debt, which will reduce the company’s exposure to short-term credit market volatility and any potential dislocation.
“ADM has been aggressive in taking actions to protect the health and safety of our colleagues, supporting our communities and health efforts around the globe, and continuing to fulfil our critical role in providing nutrition to the world, especially in this time of need,” Young continues. “This action enhances our cash position and financial flexibility as we continue to work with customers, partners and governments to protect and support the global food supply chain. With a balance sheet that, as of the end of last year, includes cash and available credit capacity in excess of $7 billion, our shareholders, customers and partners know that ADM’s strong financial position will continue to support our efforts.”
At the end of December 31, 2019, ADM had $0.9 billion of cash and cash equivalents, $5.7 billion of readily marketable inventories, and available credit capacity of $6.4 billion.
