With over-allotment exercised, Bunge offering to close
August 17, 2009
by FoodBusinessNews.net Staff
WHITE PLAINS, N.Y. — A few days after its successful public offering of 10.5 million shares of common stock, Bunge Ltd. on Aug. 17 said that the underwriters of the offering have exercised their over-allotment option to purchase 1.5 million additional shares.
Bunge said the 12 million shares were all priced at $65.50, less the applicable underwriting discount. The company said the offering was expected to close on Aug. 18.
Deducting expenses, Bunge said proceeds from the offering should total $760 million. The company plans to pay down debt with the funds that also will be used for "other general corporate purposes."
Underwriters for the offering include Morgan Stanley & Co., Inc. and Credit Suisse Securities as joint book-running managers, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc as senior co-managers and BNP Paribas Securities Corp., Calyon Securities Inc, Rabo Securities USA, Inc. and SG Americas Securities, L.L.C. as co-managers for the offering.
In trading Aug. 17 on the New York Stock Exchange, Bunge shares fell $3.92, or 6%, closing at $62.90.