Fitch rates General Mills convertible BBB+

Fitch Ratings said it assigned a BBB+ rating to General Mills, Inc.'s private placement of $1 billion floating-rate convertible senior unsecured notes due 2037, which bear interest at one-month Libor minus 7 basis points and have a conversion price of $100 per share.

The outlook is stable.

The net proceeds are expected to be directed toward the repayment of outstanding U.S. commercial paper.

The convertibles rank equal in priority with all the company's existing and future senior unsecured and unsubordinated debt. General Mills may redeem the convertibles on or after April 11, 2008, and holders may put the convertibles back to the company at year one, two, five, 10, 15, 20 and 25.

The agency said that for the last 12 months ended Feb. 25, General Mills' total debt with equity credit-to-operating EBITDA was 2.6x.

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