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|INGREDION INCORPORATED ANNOUNCES $500 MILLION SENIOR NOTE OFFERING AND SUBSEQUENT PRICING|
WESTCHESTER, Ill., September 15, 2016 - Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, today announced the pricing of an offering of $500 million aggregate amount of its 3.200 percent senior notes due October 1, 2026.
The offering was made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission. The offering is expected to close on September 22, 2016, subject to customary closing conditions.
Ingredion estimates that the net proceeds from the offering will be approximately $496.5 million after deducting the underwriting discount and before deducting other estimated expenses. Ingredion plans to use approximately $350.3 million of the net proceeds of the offering to repay outstanding indebtedness under its term loan, to use approximately $42.0 million of the net proceeds of the offering to repay outstanding indebtedness under its revolving credit facility and to use the remaining net proceeds for general corporate purposes.
J.P. Morgan Securities LLC and Merrill Lynch, Pierce Fenner & Smith Incorporated acted as joint book-running managers for the offering.
The offering of senior notes may be made only by means of a prospectus supplement and an accompanying prospectus. Copies of the prospectus supplement and the accompanying prospectus relating to the offering can be obtained from:
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these senior notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend these forward-looking statements to be covered by the safe harbor provisions for such statements.
These forward-looking statements include, among other things, the expected closing date of the offering, the expected net proceeds from the sale of the senior notes and the expected use of such proceeds. These statements can sometimes be identified by the use of forward-looking words such as "will," "plan," "expect" or other similar expressions or the negative thereof. All statements other than statements of historical facts in this press release are "forward-looking statements."
These statements are based on current circumstances or expectations, but are subject to certain inherent risks and uncertainties, many of which are difficult to predict and are beyond our control. Although we believe our expectations reflected in these forward-looking statements are based on reasonable assumptions, no assurance can be given that our expectations will prove correct.
Actual results and developments may differ materially from the expectations expressed in or implied by these statements, based on various factors, including: the effects of global economic conditions, including, particularly, the continuation or worsening of the current economic, currency and political conditions in South America and economic conditions in Europe, and their impact on our sales volumes and pricing of our products; our ability to collect our receivables from customers and our ability to raise funds at reasonable rates; fluctuations in worldwide markets for corn and other commodities, and the associated risks of hedging against such fluctuations; fluctuations in the markets and prices for our co-products, particularly corn oil; fluctuations in aggregate industry supply and market demand; the behavior of financial markets, including foreign currency fluctuations and fluctuations in interest and exchange rates; volatility and turmoil in the capital markets; the commercial and consumer credit environment; general political, economic, business, market and weather conditions in the various geographic regions and countries in which we buy our raw materials or manufacture or sell our products; future financial performance of major industries we serve, including, without limitation, the food and beverage, paper, corrugated and brewing industries; energy costs and availability, freight and shipping costs; changes in regulatory controls regarding quotas, tariffs, duties, taxes and income tax rates; operating difficulties; availability of raw materials, including potato starch, tapioca and the specific varieties of corn upon which our products are based; energy issues in Pakistan; boiler reliability; our ability to effectively integrate and operate acquired businesses; our ability to achieve budgets and to realize expected synergies; our ability to complete planned maintenance and investment projects successfully and on budget; labor disputes; genetic and biotechnology issues; changing consumption preferences, including those relating to high fructose corn syrup; increased competitive and/or customer pressure in the corn-refining industry; and the outbreak or continuation of serious communicable disease or hostilities including acts of terrorism.
Forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement as a result of new information or future events or developments. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections. For a further description of these and other risks, see the information described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2015 and subsequent reports on Forms 10-Q and 8-K.