Corteva Announces Pricing of Senior Notes Offering

By alexandreManagement

Corteva Announces Pricing of Senior Notes Offering

Corteva, a global leader in seed and crop protection technologies has announced the pricing of its senior notes offering. The offering includes $400 million of 1.750% senior notes due 2026 and $600 million of 2.875% senior notes due 2031.

The net proceeds from the offering are expected to be used for general corporate purposes, which may include repayment of outstanding debt, share repurchases, acquisitions and investments in growth initiatives.

Strong Investor Demand

The offering was well received by investors, with strong demand for the notes resulting in a final orderbook of $4.5 billion. This allowed the company to upsize the offering from the originally planned $750 million to $1 billion.

The notes were sold at a price of 99.232% of their face value for the 2026 notes and 98.720% of their face value for the 2031 notes. The notes are expected to be rated BBB+ by Standard & Poor’s and Baa1 by Moody’s.

The offering is expected to close on October 22, 2021, subject to customary closing conditions.

Corteva’s Financial Performance

Corteva reported strong financial results for the second quarter of 2021, with net sales of $5.3 billion, up 14% from the same period last year. The company’s net income for the quarter was $326 million, up from $210 million for the second quarter of 2020.

The company has been investing in research and development to bring new products to market, with a focus on sustainable and digital solutions. In July 2021, Corteva completed the acquisition of Precision Planting LLC, further expanding its digital ag capabilities.

Growth Initiatives

Corteva has identified several growth initiatives that it plans to pursue with the proceeds from the notes offering. One of these is the expansion of its digital agriculture platform, which includes offerings such as Climate FieldView and Granular Insights. The company sees significant potential in this area, as farmers increasingly adopt technology to improve productivity and sustainability.

Corteva also plans to invest in new product development, particularly in the areas of biologicals and crop protection. Biologicals are seen as a key growth area for the company, as they offer an environmentally friendly alternative to traditional chemical pesticides.

The company may also use some of the proceeds to fund strategic acquisitions that complement its existing portfolio and expand its market reach.

The successful pricing of Corteva’s senior notes offering reflects investor confidence in the company’s growth prospects and financial strength. The net proceeds from the offering will provide the company with additional flexibility to pursue its growth initiatives, including investment in digital agriculture, new product development, and strategic acquisitions.

As Corteva continues to innovate and expand its offerings, it is well positioned to capitalize on the growing demand for sustainable and digital solutions in the agriculture industry.