Printer Friendly

DEKALB GENETICS TO PREPAY $33 MILLION IN CONVERTIBLE DEBT; POTENTIAL FOR SHAREHOLDER DILUTION NOW ELIMINATED

 DEKALB, Ill., June 16 /PRNewswire/ -- DEKALB Genetics Corporation (NASDAQ-NMS: SEEDB) announced today that it has informed Pfizer Inc. of its intention to prepay the remaining $33 million of its currently outstanding convertible long-term debt, following an earlier prepayment of $30 million in April 1993. The payment will occur in July and eliminates the potential for shareholder dilution.
 The funding for the July payment will come principally from the private placement market, with $20 million provided by two privately held organizations through a 10-year agreement. Another $5 million will be provided from the company's existing bank group and the remaining $8 million will be placed in short-term financing. In April, DEKALB replaced about half of its subordinated, convertible debentures with five-year, fixed-rate financing. Funding was provided by a consortium of four banks.
 "We are very pleased to have eliminated the convertible debt, along with the potential for future shareholder dilution," said Bruce P. Bickner, chairman and chief executive officer. "We were able to capitalize on the currently attractive rates of interest to significantly lower our annual interest expense. In addition, we have spread out our debt maturities."
 The Pfizer debt was issued in January 1990, as a 15-year, $50 million zero-coupon note and accreted in value at 7 percent per annum (compounded semi-annually) with repricing scheduled for January 1995. The zero-coupon note was part of the purchase price of Pfizer's 30 percent interest in DEKALB's seed business. The transaction increased DEKALB's ownership of DEKALB Plant Genetics to 100 percent.
 Based in DeKalb, DEKALB Genetics Corporation is engaged in the research, production and marketing of agricultural seed, hybrid swine and egg-laying breeding stock. DEKALB Genetics Corporation Class B Common Stock is traded on the NASDAQ National Market System, under the symbol SEEDB.
 -0- 6/16/93
 /CONTACT: Thomas R. Rauman, Chief Financial Officer of DEKALB, 815-758-9223/
 (SEEDB)


CO: DEKALB Genetics Corporation ST: Illinois IN: AGR SU:

AL -- MN006 -- 2682 06/16/93 14:30 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 16, 1993
Words:323
Previous Article:COMMON AND PREFERRED STOCK DIVIDEND DECLARATIONS
Next Article:MAGELLAN PETROLEUM ANNOUNCES SUCCESSFUL OPEN-HOLE COMPLETION AT CENTRAL AUSTRALIA WELL
Topics:


Related Articles
DEKALB GENETICS DECLARES REGULAR QUARTERLY CASH DIVIDEND
DEKALB GENETICS INITIATES PREPAYMENT OF LONG-TERM DEBT
DEKALB GENETICS DECLARES REGULAR QUARTERLY CASH DIVIDEND
DEKALB GENETICS FORECASTS LOWER EARNINGS FOR FISCAL 1993 AND REPORTS LOSS FOR THIRD QUARTER; DUE PRIMARILY TO INTERNATIONAL SEED OPERATIONS
DEKALB GENETICS DECLARES REGULAR QUARTERLY CASH DIVIDEND
DEKALB GENETICS DECLARES REGULAR QUARTERLY CASH DIVIDEND
DEKALB GENETICS DECLARES REGULAR QUARTERLY CASH DIVIDEND
COMMNET CELLULAR INC. ANNOUNCES REDEMPTION OF ITS 6 3/4% CONVERTIBLE SUBORDINATED DEBENTURES
DEKALB GENETICS' SHAREHOLDERS APPROVE THREE-FOR-ONE STOCK SPLIT

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters