- Issues a 10 year $500 Million
Bond with an Annual Coupon of 6.000%
- Refinances Majority of Debt at More Favorable Interest Rates
and Extends Debt Maturity
- Strengthens Balance Sheet and Provides Increased Opportunities
for Growth
LUXEMBOURG, Sept. 25, 2017 /PRNewswire/ -- Adecoagro S.A.
(NYSE: AGRO) ("Adecoagro" or the "Company"), a leading agricultural
company in South America, today
announced proactive steps to continue enhancing its ability to
manage and allocate capital more efficiently, to strengthen its
balance sheet and to improve its long term financial
flexibility.
Adecoagro's long-term strategic priorities have been
consistently focused on four core areas:
- Bolster position as the lowest-cost agricultural producer
globally;
- Generate sustainable margins and cash flows across commodities
cycle;
- Deepen focus on sustainability and operational efficiency;
and
- Continue to strengthen the balance sheet.
On September 21, 2017, Adecoagro
closed its offering of U.S.$500,000,000 aggregate principal of its 6.000%
senior notes due 2027. The notes are guaranteed on a senior
unsecured basis by certain of the Company's subsidiaries. The
Company will use the proceeds from the offering to repay existing
debt and for general corporate purposes.
Mariano Bosch, Adecoagro' s Chief
Executive Officer, said: "This refinancing is a major milestone
that significantly enhances our ability to execute our strategy and
focus on long term value creation."
"Adecoagro continues to deliver solid financial and operational
performance, increasing year-over-year its adjusted EBITDA, gross
sales and net income, despite operating in a weak commodity
cycle. This robust performance, coupled with our sustained
positive free cash flow and enhanced balance sheet, will allow us
to take advantage of market opportunities, and continue to enhance
operational efficiency and cost dilution."
Charlie Boero Hughes, Adecoagro's
Chief Financial Officer, added: "The successful notes offering
substantially increases our financial flexibility while decreasing
our cost of capital over the long term. Through the offering,
we have materially extended our debt maturity to 10 years and
locked in highly favorable interest rates, which will greatly
benefit our shareholders. We are pleased with the support we
received from our lenders, investors and other financial
institutions to complete this important initiative."
About Adecoagro:
Adecoagro is a leading agro-industrial company in South America. As of June 30, 2017, Adecoagro owned over 246 thousand
hectares of farmland and several industrial facilities spread
across the most productive regions of Argentina, Brazil and Uruguay, where it produces over 1.9 million
tons of agricultural products including sugar, ethanol,
electricity, milled rice, corn, wheat, soybean and dairy products,
among others.
Forward Looking Statements
This press release
includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements
other than statements of historical fact are, or may be deemed to
be, forward-looking statements. In some cases, forward-looking
statements can be identified by the use of forward-looking terms
such as "anticipate," "estimate," "believe," "continue," "could,"
"intend," "may," "plan," "potential," "predict," "should," "will,"
"expect," "objective," "projection," "forecast," "goal,"
"guidance," "outlook," "effort," "target" or the negative of these
terms or other comparable terms. However, the absence of these
words does not mean that the statements are not
forward-looking.
These forward-looking statements are based on certain
assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe
are appropriate in the circumstances. These forward-looking
statements are subject to known and unknown risks, uncertainties
and assumptions that may cause actual results, levels of activity,
performance or achievements to be materially different from any
future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. Factors
that might cause or contribute to a material difference include,
but are not limited to, those discussed in our filings with the SEC
and the following:(i) the company's business prospects and future
results of operations; (ii) weather and other natural phenomena;
(iii) developments in, or changes to, the laws, regulations and
governmental policies governing the company's business, including
limitations on ownership of farmland by foreign entities in certain
jurisdictions in which the company operates, environmental laws and
regulations; (iv) the implementation of the company's business
strategy; (v) the company's plans relating to acquisitions, joint
ventures, strategic alliances or divestitures; (vi) the
implementation of the company's financing strategy and capital
expenditure plan; (vii) the maintenance of the company's
relationships with customers; (viii) the competitive nature of the
industries in which the company operates; (ix) the cost and
availability of financing; (x) future demand for the commodities
the company produces; (xi) international prices for commodities;
(xii) the condition of the company's land holdings; (xiii) the
development of the logistics and infrastructure for transportation
of the company's products in the countries where it operates; (xiv)
the performance of the South American and world economies; and (xv)
the relative value of the Brazilian Real, the Argentine Peso, and
the Uruguayan Peso compared to other currencies; as well as other
risks included in the company's filings and submissions with the
SEC.
All forward-looking statements set forth in this press
release are qualified by these cautionary statements and there can
be no assurance that the actual results or developments anticipated
by us will be realized or, even if substantially realized, that
they will have the expected consequences to or effects on us or our
business or operations. Forward-looking statements set forth in
this press release speak only as of the date hereof and we do not
undertake any obligation to update forward-looking statements to
reflect subsequent events or circumstances, changes in expectations
or the occurrence of unanticipated events.
Investor Relations Department
Hernan Walker
IRO
Email: ir@adecoagro.com
Tel: +54 (11) 4836-8651
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SOURCE Adecoagro S.A.