Nufarm releases big hybrid securities offer

Australian farm chemicals maker Nufarm Ltd said today it would offer A$250 million ($289.6 million) in hybrid securities with the ability to accept oversubscriptions of up to A$50 million.

The Nufarm Set-up Securities are perpetual, subordinated, unsecured, redeemable, exchangeable notes and offer semi-annual, floating rate, non-cumulative distribution payments, based on the six month bank bill swap rate plus a margin, the company said.

For the first distribution period the distribution rate will be the higher of 8.00 per cent and the six month bank bill swap rate applying on the distribution commencement date plus the margin set through a tender to investors.

For each subsequent distribution period the distribution rate will be the six month bank bill swap rate applying on the first business day of each distribution period plus the margin.

Nufarm said it would seek to have the securities listed on the Australian and New Zealand stock exchanges.

Merrill Lynch International (Australia) Ltd and UBS had been appointed joint lead managers and bookrunners to the offer.

- REUTERS