ADM (NYSE: 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," said 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 continued. "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.
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.
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.
ADM Media Relations