Bunge prices US$1.2B senior notes to support corporate spending
The agribusiness firm plans to use the funds for debt repayment, investments, and other company needs.
USA – Bunge Global SA has priced a public offering of senior notes worth a total of US$1.2 billion as the global agribusiness group seeks fresh funds for debt management, investments, and other company activities.
The offering includes two tranches issued through its finance unit, Bunge Limited Finance Corp. The company announced the pricing on March 17 and expects to complete the transaction on March 19 if all closing conditions proceed as planned.
The offering includes US$500 million (US$500 million) in 4.800 percent senior notes due in 2033 and US$700 million (US$700 million) in 5.150 percent senior notes due in 2036.
Bunge Global SA will guarantee both notes on a senior unsecured basis.
The company filed the offering through a registration statement with the U.S. Securities and Exchange Commission, which allows investors to access the notes through a public market sale.
Bunge said the funds will support several company needs. These include debt repayment and refinancing, working capital, capital spending, share buybacks, and investments in subsidiaries.
Several global banks support the deal as book running managers. They include SMBC Nikko Securities America, Citigroup Global Markets, J.P. Morgan Securities, Commerz Markets, HSBC Securities USA, Scotia Capital USA and Standard Chartered Bank for the 2033 notes. A separate group of banks leads the 2036 tranche, including BNP Paribas Securities, Credit Agricole Securities USA, Natixis Securities Americas and Rabo Securities USA.
Expansion in food ingredients
The financing comes soon after Bunge completed a separate business move in the food ingredients sector. The company recently acquired soy protein concentrate, lecithin and crush operations from International Flavors & Fragrances.
The deal added the Response, Alpha, Procon and Solec brands to Bunge’s ingredients portfolio. These products serve bakery, confectionery, snack foods, meat processing and plant based foods.
With the acquisition complete, the company now offers a wider range of textured, powdered and functional soy protein concentrates. Food makers often use these ingredients in high protein baked goods, snacks and plant based products.
“We are excited to integrate IFF’s soy protein concentrate, lecithin and crush business and welcome our new colleagues to Bunge,” said Brian Douville, vice president of emulsifiers and proteins at Bunge.
He added that the company wants food and beverage manufacturers to view Bunge as a reliable supplier with a broad range of ingredient options.
Bunge runs operations in more than 50 countries and employs about 34,000 people. The company works with farmers and food producers to move grains, oilseeds and other farm goods across global supply chains.
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