Pestalozzi advises AGCO on USD 1.1bn Notes Issuance
On March 21, 2024, AGCO Corporation, a worldwide manufacturer and distributor of agricultural machinery and precision Ag technology (NYSE: AGCO; the "Company"), completed its underwritten public offering of (i) USD 400,000,000 aggregate principal amount of 5.450% Senior Notes due 2027 and (ii) USD 700,000,000 aggregate principal amount of 5.800% Notes due 2034 (together, the "Notes"). Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Rabo Securities USA, Inc. acted as representatives of the underwriters. The Notes are unsecured and unsubordinated indebtedness of the Company and are guaranteed on a senior unsecured basis, jointly and severally, by AGCO International Holdings B.V., AGCO International GmbH, Massey Ferguson Corp. and The GSI Group, LLC, direct and indirect subsidiaries of the Company.
As previously disclosed, the Company entered into a sale and contribution agreement with Trimble Inc. and its subsidiary, Trimble Solutions, LLC (the "JV") on September 28, 2023, pursuant to which, among other things, the Company would contribute its interest in JCA Industries, Inc. (d/b/a JCA Technologies) to the JV and purchase membership interests in the JV resulting in AGCO's ownership of 85% in the JV (the "Acquisition"). The Company intends to use the net proceeds of the offering of the Notes, proceeds of anticipated term loans of USD 500 million, and other cash on hand to fund the purchase price for the Acquisition.
Pestalozzi advised the Company and AGCO International GmbH on all Swiss law aspects of the debt financing transaction.