When your swimming in green -- as in cash -- like acquisitive agribusiness Monsanto Co., finding favorable terms for a loan is no big deal. Credit rating agency Standard & Poor's affirmed that notion by assigning an "A" senior unsecured debt rating to Monsanto's offering of $300 million of notes due 2018 and $250 million of notes due 2038. The company will use the loan to refinance $236 million of maturing debt and finance a portion of the expansion of its corn seed production facilities.
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"The ratings on Monsanto reflect its strong leadership position in seeds, plant biotechnology, and crop protection; very good profitability and cash flow; and a modest financial risk profile," said Standard & Poor's credit analyst Cynthia Werneth.
Monsanto's strategy of using a portion of that loan to refinance maturing debt will most likely free up more money for deals. The company already agreed to acquire Netherlands' De Ruiter Seeds Group BV for €546 million ($800 million) in cash on March 31, hoping to enlarge its protected-culture vegetable seed market. Only days earlier, Monsanto said it would be making acquisitions to further spur growth. - Gerald Magpily
See S&P press release (registration required)
TheDeal.com: Monsanto buys Dutch seed group
Dealscape: For Monsanto, cash is the currency for deals
