General Mills to sell $1 billion in notes
April 05, 2007
by FoodBusinessNews.net Staff
MINNEAPOLIS — General Mills has priced a private placement of $1 billion aggregate principal amount of floating rate convertible senior notes due 2037.
The notes will have interest at a floating rate equal to one month LIBOR minus 0.07% and subject to monthly reset and payable quarterly in arrears. The initial conversion rate will be 10 shares of General Mills’ common stock per $1,000 principal amount of convertible notes, equal to an initial conversion price of $100 per share.
The company may redeem a portion or all of the notes for cash any time after April 11, 2008, at 100% of the principal amount plus accrued and unpaid interest.
On April 11 of 2008, 2009, 2012, 2017, 2022, 2027 and 2032 the note holders may have General Mills repurchase the notes for cash at a price equal to 100% of the principal amount plus accrued and unpaid interest.
The company will use the revenue from the offer to repay a part of its outstanding U.S. commercial paper.
The notes are convertible to cash and shares of General Mills stock at time before the close of business on the business day before the maturity date. When converted, holders will receive cash up to the principal amount of the converted notes and General Mills common stock.
General Mills is giving the initial purchaser the option to buy an additional $150 million of the notes to cover over-allotments.