Bayer yet to enter underwriting agreement for Monsanto equity financing

22 Sep 2016 – Monsanto [NYSE:MON] bidder Bayer [FRA:BAYN] has yet to enter into any underwriting agreement for the proposed USD 19bn in equity issuance backing its approach, according to a person familiar with the situation.

Bayer will make a final decision on the volume and shape of the equity financing in 2017 and it remains “early days”, the person added. The German group’s advisory team is “actively working” on preparations for equity issuance, a source close to the matter added.

Bridge financing of USD 57bn has already been committed by BofA Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC and JP Morgan.

The bidder said it plans to split its proposed USD 19bn equity issuance between mandatory convertible notes (MCNs) and a rights issue. This news service previously reported MCNs could be issued within a window of USD 3bn-USD 5bn, which would leave a rights issue coming in at USD 14bn-USD 16bn.