AGCO plans revolver borrowings to help fund note redemption

By Jennifer Chiou

New York, May 24 - AGCO Corp. announced Tuesday plans to use revolving credit facility borrowings to help fund the redemption of its $250 million of 9½% senior notes due 2008.

Funding will also come from cash raised by transferring wholesale interest-bearing receivables to its U.S. and Canadian retail finance joint ventures and available cash on hand.

With the redemption of the notes, AGCO estimates a reduction of future interest costs of $14 million, or $0.14 per share, per year.

Increased joint venture income and reduced selling, general and administrative expenses will likely help to offset a reduction in interest income, the company said.

Duluth, Ga.-based AGCO manufactures and distributes agricultural equipment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.