) resorted to repaying its maturing debt by floating fresh senior
notes having a 10- and 30-year maturity period. The issue
will be settled on July 12, 2012.
Senior unsecured notes worth $500 million have been issued
precisely in two equal parts. The first lot consists of $250
million aggregate principal amount of 2.2% senior notes due on July
15, 2022. Yield to maturity on these notes is 2.213% and have been
offered at 99.884% to the public. Interest will be paid
semi-annually on these beginning January 15, 2013.
The second lot consists of another $250 million aggregate
principal amount of 3.6% senior notes, due to mature on July 15,
2042. These notes will yield 3.608% on maturity and have been
offered at 99.854%. Interest will be paid semi-annually on these
beginning January 15, 2013.
The proceeds from the issuance will be used to repay $486
million of 7 3/8% senior notes maturing on August 15, 2012.
Monsanto currently holds A1 (Stable) Rating issued by Moody's, A+
(Stable) by S&P, and A+ (Stable) by Fitch credit rating
We believe the debt issuance-repayment arrangement made will
work in favour of the company and help it retain its solid balance
sheet position. Fiscal third quarter 2012 ending, the company had
approximately $1,538 million of long-term debt, net of current
portions as against a whopping $1,716 million of cash and cash
Monsanto's biotechnology research and innovations position it as
a market leader above its peers, such as
The Dow Chemical Company
The current Zacks Consensus Estimate for the fiscal fourth
quarter 2012 is a loss of 44 cents, representing a year-over-year
decline of 98.70%. Estimates for the fiscal years 2012 and 2013 are
$3.70 and $4.30, reflecting annual growth of 25.12% and 16.06%,
Monsanto has a Zacks #1 Rank, which translates into a short-term
Strong Buy rating (1-3 months).
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