Corteva's wholly-owned subsidiary, Vylor Inc., which will hold the seed business following a planned corporate separation, has issued $1.1 billion in senior notes through a private offering. This financing is a key step in capitalizing the new entity ahead of its separation from Corteva's crop protection business.
Key Details
- Offering Details: Vylor issued $1.1 billion in aggregate principal, consisting of $550 million of 5.125% Senior Notes due 2031 and $550 million of 5.625% Senior Notes due 2036.
- Use of Proceeds: Net proceeds will be used to make a cash distribution to its parent, EIDP, Inc., as partial consideration for the contribution of the seed business to Vylor, and for other corporate purposes.
- Contingency Clause: The notes include a special mandatory redemption provision requiring Vylor to redeem the notes at 101% of face value if the separation from Corteva is not completed.
- Guarantee: The notes are temporarily guaranteed by EIDP, Inc. on a senior unsecured basis until the separation is consummated, at which point the guarantee will be released. The first interest payment is scheduled for February 15, 2027.