Agricultural products supplier
) will issue and sell debentures worth $1 billion, comprising
$500 million aggregate principal amount of 3.5% debentures due
Jun 1, 2023, and $500 million aggregate principal amount of 4.9%
debentures due Jun 1, 2043. The debentures are registered under
the multi-jurisdictional disclosure system in Canada and the U.S.
Issuance and sales of the debentures will be restricted only in
Agrium plans to utilize a part of the proceeds from the offering
to fund its expected capital spendings, pending which, it may be
used for general corporate purposes and cut debt under its
short-term credit facilities.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, a
wholly-owned subsidiary of
Bank of America Corporation
); RBC Capital Markets, LLC, the corporate and investment banking
arm of the
Royal Bank of Canada
), and Scotia Capital (USA) Inc, an affiliate to
The Bank of Nova Scotia
), are acting as joint book-running managers for the debenture
The necessary documents including preliminary prospectus
supplement and the Agrium's related effective Registration
Statement on Form F-10 associated with the debentures offering
has been filed with the Canadian securities regulatory
authorities in Canada and the U.S. Securities and Exchange
Commission under the multi-jurisdictional disclosure system. The
final prospectus is yet to be filed with the same authorities in
both the countries.
Agrium reported its first-quarter 2013 results on May 9. The
company reported earnings of 94 cents, missing the Zacks
Consensus Estimate of $1.07 and were below 97 cents earned in the
year ago quarter. Profit dipped 9% year over year to $141
million, hurt by lower sales.
Revenues fell roughly 9.7% year over year to $3,224 million in
the reported quarter, also missing the Zacks Consensus Estimate
of $3,491 million. Lower sales in the Retail segment led to the
decline in sales.
Agrium expects strong demand for crop inputs in 2013 as
farmers seek to increase crop yields through utilizing top seed
genetics, crop protection products, and crop nutrients. Demand
for crop protection products, primarily fungicides, is expected
to improve in 2013 under more normal growing conditions. Agrium
believes that farmers will continue to seek high-quality
products, services, and expertise to boost yield and productivity
in coming years.
Agrium currently retains a Zacks Rank #4 (Sell).
AGRIUM INC (AGU): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis
BANK OF NOVA SC (BNS): Free Stock Analysis
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