UPDATE 1-Viterra eyes C$300 million debt offering
SASKATOON, Saskatchewan, June 22 (Reuters) - Viterra (VT.TO) may raise up to C$300 million ($261 million) in new debt, the Canadian grain-handling company said on Monday.
The Regina, Saskatchewan-based company said it is seeing how much interest there is in the fixed income market in an offering that the company would use for general corporate purposes, which could include acquisitions.
The new debt is not necessary to complete Viterra's $1.2-billion purchase of Australia's ABB Grain Ltd.ABB.AX, said Colleen Vancha, Viterra's senior vice-president of investor relations and corporate affairs.
Viterra raised C$450 million this spring in a share offering that was contingent on its acquisition of ABB Grain Ltd. It announced plans last week to buy Associated Proteins LP, a Canadian canola crushing plant, for C$64 million ($55.7 million).
Viterra expects to have an update on raising the new debt within about a week, Vancha said.
The company would like its debt-to-capital ratio to be between 30 and 40 percent. Its ratio now is about 25 percent, she said.
Viterra shares were down 34 Canadian cents at C$9.51 on the Toronto Stock Exchange on Monday afternoon.
($1=$1.15 Canadian) (Reporting by Rod Nickel; editing by Peter Galloway)
