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Adecoagro S.A. Announces Proposed Offering of Senior Notes

Adecoagro S.A. (NYSE: AGRO), a dedicated leader in sustainable agricultural production, has revealed its intentions to issue senior unsecured notes through a private placement. This move aligns with the company's ongoing commitment to leverage favorable funding opportunities to enhance operational efficiency and expand its market presence.

Details of the Offering

The company plans to offer these notes primarily to qualified institutional buyers as per Rule 144A of the Securities Act of 1933, alongside additional offerings to non-U.S. buyers following Regulation S. The senior unsecured notes are slated to be secured by various subsidiaries of the company, providing reassurance to investors regarding the security of their investment.

Adecoagro’s management underscored that the timing for pricing and the final terms of these notes would be contingent upon prevailing market conditions as well as other strategic factors, showcasing the company's agile response to market dynamics. The anticipated proceeds from this offering are earmarked for two key purposes: executing a tender offer aimed at repurchasing its existing 6.000% Notes due in 2027 and addressing additional corporate needs, which encompass capital expenditures and liability management.

Strategic Importance of the Offering

This strategic financial maneuver reflects Adecoagro’s proactive approach to optimizing its capital structure and positions the company for future growth. By repurchasing its existing notes, Adecoagro aims to reduce interest expenses and improve financial flexibility, ultimately enabling the company to invest more readily in its agricultural and energy operations across South America, particularly in the fertile regions of Argentina, Brazil, and Uruguay.

Through this initiative, Adecoagro affirms its mission of sustainability by emphasizing responsible financial management as integral to its operational ethos. The company currently oversees an impressive 210.4 thousand hectares of farmland, capable of producing over 2.8 million tons of agricultural products and more than 1 million MWh of renewable electricity annually.

Regulatory Considerations

It is important to note, however, that this press release does not serve as an offer for the sale of securities, nor does it solicit purchase agreements. Moreover, the notes and related guarantees remain unregistered under the Securities Act and relevant state laws, ensuring compliance with applicable regulations.

Potential investors and interested parties are encouraged to consult with their financial advisors and conduct due diligence regarding these offerings. Adecoagro has marked its territory as a vanguard in sustainable agricultural production, mixing innovation with environmental stewardship for a future-centric business model.

About Adecoagro

Adecoagro is not just a leader in production; it represents a paradigm of sustainable business practices in South America. With extensive investments in farmland and renewable energy, the company has positioned itself as a significant player in ensuring food security while simultaneously addressing the global energy crisis through sustainable means. Its commitment is embedded deep within its operations, demonstrating a robust model that intertwines economic growth with ecological integrity.

For additional details on this initiative and more about Adecoagro, stakeholders and media personnel can connect with Victoria Cabello, the Investor Relations Officer.

In conclusion, Adecoagro’s proposal for the senior notes is a calculated step towards enhancing its financial muscle and fulfilling its operational goals while remaining steadfast in its commitment to sustainability. As it navigates through the complexities of the financial landscape, the company’s persistent dedication to its values makes it a noteworthy benchmark in both agricultural and business practices.