, a manufacturer and distributor of agricultural equipment, said Monday that, subject to market conditions and other factors, it plans to offer $175 million aggregate principal amount of convertible senior subordinated notes due 2036 through a public offering.
As part of the offering, the Duluth, Ga.-based company will grant the underwriters a 30-day option, solely to cover over-allotments, to purchase up to an additional $26.25 million aggregate principal amount of the notes. The interest rate, conversion price and other terms of the notes will be determined by negotiations between AGCO and the underwriters.
The company said that it expects to use the net proceeds from the offering of the notes to repay a portion of the term loans outstanding under its existing bank credit agreement.
Morgan Stanley and Goldman, Sachs will act as joint book-running managers for the offering of the notes, while Rabo Securities USA and Lazard Capital Markets are acting as co-managers for the offering, the company added.
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