Report: Cargill plans to raise $1.25 billion through high-grade bond issuance

Cargill Inc. plans to raise $1.25 billion through an investment-grade bond sale, becoming one of the few companies to tap the market as borrowing costs soar. The grain trading giant is issuing a two-part bond with maturities of three and 10 years, according to people familiar with the matter. The longer-dated portion was priced at 75 basis points above Treasuries, about 25 basis points tighter than initial discussions. The offering is Cargill's first bond sale in about a year, coming as surging global bond yields drive up corporate financing costs. Companies seeking to refinance debt or fund deals are facing higher costs as a result. Last week, Paramount Skydance Corp.'s large new bond issuance met with a chilly market reception, immediately leaving investors with significant paper losses after pricing and stirring market unease.