...October 1, 2019 SYDNEY (S&P Global Ratings) Oct. 1, 2019--S&P Global Ratings today said that Nufarm Ltd.'s (##/Negative/--) proposed sale of the company's South American crop protection and seed treatment operations to Sumitomo Chemical Co. Ltd. would provide much-needed balance sheet relief and has removed the imminent risk of a downgrade. Nufarm indicated that cash proceeds of about A$1.2 billion will be predominantly used to strengthen the group's currently stretched balance sheet. The transaction could meaningfully reduce Nufarm's financing costs and support cash generation, with the expected elimination of about A$60 million-A$70 million of interest and currency hedging related costs following debt repayment. Pro-forma the transaction, the company will have about A$951 million of discretionary cash available for debt repayment or capital management after the repurchase of the A$97.5 million Sumitomo preference securities and about A$140 million in transaction costs and tax. Importantly,...
