Vylor Inc., a seed company slated to be spun off from Corteva Inc., successfully raised $1.1 billion on Thursday by selling investment-grade bonds. This bond offering is part of a larger trend of pending spinoffs, such as Honeywell Aerospace Inc. and FedEx Freight Holding Co., conducting note deals to facilitate payouts to their parent companies.
This bond sale is tied to Corteva's plan to separate into two independent, publicly traded companies: one focused on crop protection and the other, Vylor, on seeds. The separation is expected to be finalized around October 1, 2026. Corteva announced on August 6, 2026, that Vylor had also initiated private exchange offers for outstanding senior notes of EIDP, Inc., another Corteva subsidiary, totaling up to $1.6 billion. These EIDP notes, due in 2030, 2032, and 2033, would be exchanged for new Vylor notes.
In preparation for the separation, Vylor has also secured significant credit facilities, including a $3.0 billion five-year revolving credit facility, a $1.5 billion 364-day revolving credit facility, and a $2.75 billion delayed draw term loan. These facilities support an anticipated borrowing profile of $5.58 billion and a cash balance of $1.1 billion at the time of the spinoff, indicating a carefully structured capital plan designed to meet the operational and strategic needs of the standalone seed business. Vylor aims for an investment-grade credit rating with a debt-to-EBITDA leverage ratio targeted between 0.8x and 1.1x at December 31, 2026, and not exceeding 2.5x long-term.
The exchange offers are conditional on the completion of the separation and require majority holder consents to amend EIDP's indentures, removing restrictive covenants and certain change-of-control repurchase rights. Vylor estimates it would issue $1.28 billion in Vylor Notes, comprising $400 million each for 2030 and 2032 notes, and $480 million for 2033 notes, assuming an 80% tender rate of the corresponding EIDP notes, with a weighted-average interest rate of 4.12 percent. The company projects $16 million in debt transfer fees, to be amortized over the life of the Vylor Notes.
