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Agco to Sell Notes

It plans to raise $175 million.


(AG) - Get First Majestic Silver Corp. Report

, 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.

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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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