Agco slated to launch $750 million credit facility in London Monday, U.S. Thursday

By Sara Rosenberg

New York, Oct. 24 - Agco Corp. is expected to hold a bank meeting for its proposed $750 million credit facility in London on Monday and in New York on Thursday, according to a company spokesman. Rabobank is the lead bank on the deal.

The facility consists of a $450 million term loan B and a $300 million multicurrency revolver.

"A portion of the term B will be in dollars and a portion will be in euros," the spokesman said. "It depends on how much interest we get over there."

Price talk was not available. However during a conference call on Sept. 10 company officials stated that they expect pricing to be in the same range as pricing on the existing credit facility, which is currently Libor plus 300 basis points.

Proceeds will be used to help fund the acquisition of Valtra Corp. for €600 million, or approximately $660 million. Equity is also expected to be used to fund the acquisition. The transaction is expected to close later in the fourth quarter at the earliest, company officials previously said.

Agco is a Duluth, Ga. manufacturer and distributor of agricultural equipment and related replacement parts. Valtra is a tractor and off-road engine manufacturer with market leadership positions in the Nordic region of Europe and Latin America.

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