monsanto co (MON) Key Developments
Monsanto Company Announces $800 Million Debt Offering
Apr 8 15
Monsanto Company announced the pricing of $800 million aggregate principal amount of fixed rate senior notes consisting of $300 million in senior notes that mature in 2025 and bear interest at a rate of 2.850%, $500 million in senior notes that mature in 2045 and bear interest at a rate of 3.950%. The company indicated that it expects to use the proceeds from the offering for general corporate purposes, which may include capital expenditures and share repurchases.
Monsanto Company Enters into $3 Billion Five-Year Revolving Credit Agreement
Apr 2 15
On March 27, 2015, Monsanto Company entered into a $3 billion, five-year revolving credit agreement (the Five-Year Credit Agreement) with certain lender parties thereto, JPMorgan Chase Bank, N.A., as administrative agent, Citibank, N.A., Bank of America, N.A. and Morgan Stanley Senior Funding Inc., as co-syndication agents, Barclays Bank plc, Goldman Sachs Bank USA, The Bank of Tokyo-Mitsubishi UFJ Ltd. and Wells Fargo Bank, National Association, as co-documentation agents, and J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley Senior Funding Inc., as co-lead arrangers and joint bookrunners. This agreement replaces the company's $2.5 billion four-year revolving credit agreement, dated as of April 1, 2011, as amended (the Prior Agreement). Under the terms of the Five-Year Credit Agreement, the company may obtain and utilize from time to time up to $3 billion, the amount of the aggregate commitments of the lenders, in revolving credit loans and competitive bid advances for general corporate purposes. The company may request increases in the lending commitments under the Five-Year Credit Agreement, but the aggregate lending commitments as increased may not exceed $3.75 billion. Borrowings under the Five-Year Credit Agreement may be made in US Dollars, Euros, Pounds Sterling and Yen. Borrowings (other than competitive bid advances) bear interest at a Eurocurrency Rate or the Base Rate, as defined in the Five-Year Credit Agreement. Up to $300 million of the total credit facility under the Five-Year Credit Agreement is available for the issuance of letters of credit in US Dollars. Additionally, up to $200 million of the total credit facility is available to the company for swing line loans in US Dollars, available on a same-day basis. The Five-Year Credit Agreement expires on March 27, 2020. Under circumstances specified in the Five-Year Credit Agreement, the company may request up to two one-year extensions of such termination date. The company has the right, subject to certain conditions set in the Five-Year Credit Agreement, to designate foreign subsidiaries of the company as borrowers under the Five-Year Credit Agreement. The company guarantees the obligations of any foreign subsidiary borrowers under the agreement.
Monsanto Company Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended February 28, 2015; Affirms Earnings Guidance for the Fiscal Year 2015
Apr 1 15
Monsanto Company announced unaudited consolidated earnings results for the second quarter and six months ended February 28, 2015. For the quarter, the company's net sales were $5,197 million compared with $5,832 million a year ago. Income from operations was $2,020 million compared with $2,418 million a year ago. Income from continuing operations before income taxes was $1,962 million compared with $2,340 million a year ago. Income from continuing operations including portion attributable to non controlling interest was $1,412 million or $2.90 per diluted share compared with $1,668 million or $3.15 per diluted share a year ago. Net income attributable to the company was $1,425 million or $2.92 per diluted share compared with $1,670 million or $3.15 per diluted share a year ago. EBIT was $2,043 million compared with $2,363 million a year ago.
For the six months, the company's net sales were $8,067 million compared with $8,975 million a year ago. Income from operations was $2,439 million compared with $2,983 million a year ago. Income from continuing operations before income taxes was $2,289 million compared with $2,856 million a year ago. Income from continuing operations including portion attributable to non controlling interest was $1,639 million or $3.36 per diluted share compared with $2,032 million or $3.81 per diluted share a year ago. Net income attributable to the company was $1,668 million or $3.41 per diluted share compared with $2,038 million or $3.83 per diluted share a year ago. EBIT was $2,470 million compared with $2,917 million a year ago. Net cash provided by operating activities was $1,518 million compared with $1,846 million a year ago. Capital expenditures were $511 million compared with $471 million a year ago.
The company affirmed earnings guidance for the fiscal year 2015. For the fiscal year 2015, the company diluted earnings per share in the range of $5.80 to $6.05 and diluted earnings per share from ongoing business in the range of $5.75 to $6.00, net cash provided by operating activities in the range of $3,000 million to $3,300 million, free cash flow in the range of $2,000 million to $2,200 million. The EPS guidance is inclusive of what is now expected to be a $0.35 to $0.40 headwind for this fiscal year driven by the significant deterioration of several key currencies versus the U.S. dollar.
DuPont Files Lawsuit against Monsanto
Mar 19 15
DuPont has filed lawsuit against Monsanto, claiming that Monsanto didn't pay royalties awarded during a previous arbitration decision. It centers around gene-gun technology used to develop herbicide-resistant soybeans. The lawsuit, filed in the Delaware Court of Chancery, seeks to enforce a 2012 arbitration panel decision requiring Monsanto to pay royalties on the technology known as Biolistic. DuPont claimed Monsanto made two initial payments totaling roughly $33.3 million, but then failed to meet additional royalty obligations.
Monsanto to Pay $350,000 to Settle More Wheat-Related Lawsuits
Mar 19 15
On March 18, 2015, Monsanto announced it will pay about $350,000 to settle class action lawsuits brought by farmers in seven states over genetically modified wheat. The company will make donations of $50,000 to agricultural schools at land grant colleges in Kansas, Missouri, Illinois, Oklahoma, Texas, Louisiana and Mississippi. It will also reimburse the plaintiffs' and their lawyers for a portion of the costs associated with the case. The company said that under the terms of the settlement agreement it can't disclose how much that will cost. In November, Monsanto agreed to pay about $2.4 million to settle other lawsuits related to the incident. Most of the money will go into a fund to pay farmers in Washington, Oregon and Idaho who sold soft white wheat between May 30 and Nov. 30, 2013. The lawsuits relate to the discovery of genetically modified wheat on a farm in Oregon in May 2013. The wheat had not been approved, and after the discovery, Japan and South Korea temporarily suspended some wheat orders. The European Union called for tougher testing of shipments from the U.S. The company said one class action lawsuit remains active. That suit involves farmers in Arkansas, and Monsanto said it hopes to resolve that litigation soon.