Bunge Global SA announced today the commencement of exchange offers and consent solicitations as part of its ongoing acquisition of Viterra Limited. The process, led by Bunge's subsidiary, Bunge Limited Finance Corp. (BLFC), involves exchanging existing Viterra notes for new notes issued by BLFC along with additional cash compensation.
The exchange targets four series of Viterra's outstanding notes, ranging from those due in 2026 to those maturing in 2032, totaling up to $1.95 billion in new Bunge notes. The initiative is designed to streamline financial structures post-acquisition, aligning Viterra's debt with Bunge’s broader corporate guarantees.
Alongside the exchange offers, BLFC is also initiating consent solicitations to amend certain terms in the indentures associated with these notes. These amendments aim to eliminate specific covenants and provisions, aligning them more closely with Bunge's operational and financial strategies.
Key dates include a September 20, 2024 early tender deadline, with benefits for early participation, and an October 7, 2024 expiration date. Settlement is expected shortly after the expiration date, subject to the timing of the acquisition's closure.
The transaction is contingent upon various conditions, including antitrust approvals and other customary closing conditions. It is also part of Bunge’s strategy to solidify its footing in the agribusiness sector by integrating Viterra’s operations more seamlessly into its portfolio.
Eligible holders participating in the exchange will receive new notes equivalent to their current holdings, along with accrued interest. These new notes will mirror the original notes in terms of interest rate and maturity but will be secured by Bunge.
This strategic move is expected to enhance liquidity and financial flexibility for the combined entity, further enabling Bunge to pursue its growth and operational efficiency goals in the global agribusiness landscape.
