As filed with the Securities and Exchange Commission on August 13, 1996
Registration No. 333-4213
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
AMENDMENT NO. 4 TO FORM S-3
REGISTRATION STATEMENT
Under
The Securities Act of 1933
______________________
THE ANDERSONS, INC.
(Exact name of registrant as specified in its charter)
Ohio 5150 34-1562374
(State or other jurisdiction (Primary Standard Industrial (I.R.S. employer
of incorporation or organization) Classification Code Number) identification
number)
480 West Dussel Drive
Maumee, Ohio 43537
(419) 893-5050
(Address, including zip code, and telephone number, including area
code, of registrant's principal executive offices)
______________________
Beverly J. McBride, General Counsel
The Andersons, Inc.
480 West Dussel Drive
Maumee, Ohio 43537
(419) 893-5050
(Name, address, including zip code, and telephone number, including
area code, of agent for service)
______________________
Approximate date of commencement of proposed sale of the securities to
the public: From time to time after the effective date of the registration
statement.
If the securities being registered on this form are to be offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]
If the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or
interest reinvestment plans, check the following box. [x]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ]
If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box. [ ]
_____________________________________________
The Registrant hereby amends this Registration Statement on such date
or dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until this Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
SUBJECT TO COMPLETION, DATED AUGUST 13, 1996
THE ANDERSONS, INC.
_________________________
PROSPECTUS
_________________________
$5,000,000 7.7 % Ten-Year Debentures
$5,000,000 7.0 % Five-Year Debentures
SUBJECT TO A $1,000 MINIMUM PRINCIPAL AMOUNT REQUIREMENT
Interest will be payable to the registered holder annually on each
anniversary of the original issue date of a Debenture. Interest will begin to
accrue at the original issue date of a Debenture, which is the first day of the
month following the month in which payment for the Debenture is received by The
Andersons, Inc. The Debenture may be redeemed in whole or in part, without
premium, at any time upon payment of principal and accrued interest. No
sinking fund will be provided for the Debentures which will be unsecured
obligations of the Company. Except for the rate of interest and years to
maturity, the terms and conditions of the Debentures are identical. See
"Description of Debentures."
The Debentures will not be listed on any national securities exchange.
The Company does not expect an over-the-counter market to develop for the
Debentures.
Investors should carefully consider the factors set forth under the
caption "Certain Risk Factors," beginning on page 4 hereof.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
____________________
Underwriting
Discounts Proceeds to Company (1)
Price to Public and Commissions Maximum Minimum
Per Debenture 100% None 100% None
Total $10,000,000 None $10,000,000 None
____________
(1) Before deduction of expenses payable by the Company, estimated at $25,448.
The Debentures are offered on a continuous basis direct by the Company
and no minimum principal amount of Debentures will be required for the offering
to become effective. No commissions or remuneration will be paid for any
selling activities hereunder. Subscriptions or inquiries should be directed to
the principal administrative offices of The Andersons, Inc., as follows:
THE ANDERSONS, INC.
Corporate Treasurer
480 West Dussel Drive
Maumee, Ohio 43537
(419) 893-5050
The date of this Prospectus is August 13, 1996.
AVAILABLE INFORMATION
The Andersons, Inc. and its predecessors have been and are currently
subject to the informational requirements of the Securities Exchange Act of
1934, as amended (the "Exchange Act"). In accordance therewith, the Company
files reports, proxy statements and other information with the Securities and
Exchange Commission (the "SEC"). Such reports, proxy statements, and other
information can be inspected and copied at the offices of the SEC at 450 Fifth
Street, N.W., Washington, D.C. 20549 and at the regional offices of the SEC at
75 Park Place, New York, New York 10007 and Northwestern Atrium Center, 500 W.
Madison Street, Suite 1400, Chicago, Illinois 60661, and copies of such
material can be obtained from the Public Reference Section at the principal
office of the SEC, 450 Fifth Street, N.W., Washington, D.C. 20549, at
prescribed rates.
The Company has filed with the SEC, 450 Fifth Street, N.W., Washington,
D.C. 20549, a Registration Statement under the Securities Act of 1933, as
amended, with respect to the securities offered hereby. This Prospectus does
not contain all the information set forth in the Registration Statement,
certain items of which are contained in schedules and exhibits to the
Registration Statement as permitted by the rules and regulations of the SEC.
For further information, reference is hereby made to the Registration
Statement, including the exhibits filed as a part thereof, which may be
obtained from the Commission upon payment of the fees prescribed by the
Commission.
The Company will furnish holders of the Debentures offered hereby, upon
request, with its annual report to shareholders containing consolidated
financial statements audited by an independent public accounting firm.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
The Company's Annual Report on Form 10-K for the year ended December
31, 1995 and the Company's Quarterly Report on Form 10-Q for the quarters ended
March 31, 1996 and June 30, 1996, which have been filed by the Company with the
SEC, are incorporated herein by reference.
All documents filed by the Company with the SEC pursuant to Section
13(a), 13(c), 15 or 15(d) of the Exchange Act after the date of this Prospectus
and prior to the termination of the offering of the Debentures shall be deemed
to be incorporated by reference in this Prospectus and to be a part hereof
from the date of filing of such documents. Any statement contained herein or
in a document incorporated or deemed to be incorporated by reference in this
Prospectus shall be deemed to be modified or superseded for purposes of this
Prospectus to the extent that a statement contained herein or in any other
subsequently filed document which also is or is deemed to be incorporated by
reference herein modifies or supersedes such statement. Any such statement so
modified or superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this Prospectus.
The Company will provide without charge to each person to whom this
Prospectus is delivered, upon written or oral request of such person, a copy of
any document incorporated by reference in this Prospectus, other than exhibits
to any such document not specifically described above. Requests for such
documents should be directed to The Andersons, Inc., 480 West Dussel Drive,
Maumee, Ohio 43537, Attention: Corporate Treasurer (Telephone Number (419)891-
6417).
SUMMARY
The following summary is qualified in its entirety by the detailed
information and financial statements and notes thereto appearing elsewhere or
incorporated by reference in this Prospectus.
THE COMPANY
The Andersons, Inc. is engaged primarily in agriculture and retail with
several smaller businesses. The Agriculture Group includes grain
merchandising, the operation of terminal grain elevator facilities and
distribution of agricultural fertilizer. The Retail Group includes the
operation of six General Stores and a distribution center. The Business
Development Group includes production and distribution of lawn fertilizer and
corn cob products, railcar leasing and repair, as well as several smaller
businesses. Together with its predecessor partnerships ("The Andersons"), the
Company has been in existence since 1947 and has offered debentures under
similar terms to this offering for many years. The principal administrative
office s of the Company are located at 480 West Dussel Drive, Maumee, Ohio
43537. The general telephone number is (419) 893-5050.
On January 2, 1996, The Andersons (the partnership) merged with and
into its corporate general partner, whose name was changed to The Andersons,
Inc. Common shares were issued to former partners and the Company was listed
on the Nasdaq National Market, where trading began on February 20, 1996. This
listing provided the Company's equity holders a market valuation for their
interest and the potential for increased liquidity. In addition, it provided
the Company with the ability to access equity markets in the future, the
ability to use its own common shares as acquisition currency, greater
opportunity to provide performance compensation to its key employees and
increased employee ownership.
THE OFFERING
Securities $5,000,000 principal amount 7.7 % Ten-Year Debentures.
$5,000,000 principal amount 7.0 % Five-Year Debentures.
Offered directly by the Company. Subject to a $1,000
minimum principal amount requirement.
Redemption Redeemable at maturity or at the option of the Company for
principal plus accrued interest.
Use of Proceeds Add to working capital and general corporate purposes.
<TABLE>
RATIO OF EARNINGS TO FIXED CHARGES (b)
<S> <C> <C> <C> <C> <C> <C> <C>
Six months
ended June 30 Year ended December 31
1996 1995 1995 1994 1993 1992 1991
Ratio of earnings
to fixed charges 1.55 1.62 1.62 2.42 2.29 2.14 1.47
</TABLE>
<TABLE>
SUMMARY FINANCIAL INFORMATION (b)
(In thousands)
Six months ended
June 30 Year ended December 31
1996 1995 1995 1994 1993
Sales and merchandising
revenues $601,942 $469,964 $1,092,410 $968,880 $796,471
Income from operations $5,703 $4,649 $10,188 $15,171 $11,080
Net income (a) $2,649 $2,813 $6,273 $9,285 $6,986
<S> <C> <C> <C> <C> <C>
As of June 30 As of December 31
1996 1995 1995 1994 1993
Working Capital $62,510 $50,199 $58,897 $57,623 $47,795
Total Assets $361,898 $299,133 $455,518 $344,809 $360,586
Total long-term debt
and other long-term
obligations $78,494 $72,321 $77,743 $74,277 $55,817
Shareholders' equity $70,130 $66,333 $67,260 $64,870 $56,256
</TABLE>
(a) Prior to January 2, 1996, the majority of operations were conducted in a
partnership form and therefore the operating results were included in the tax
returns of the partners. Income tax expenses for earnings in the corporate
form were not material. Net income, as presented herein, for the six months
ended June 30, 1995 and the years ended December 31, 1995, 1994, and 1993
include a pro forma provision for income taxes.
(b) Prior to January 2, 1996, this financial information was included in
filings for two registrants, The Andersons, an Ohio limited partnership, and
The Andersons Management Corp., its sole general partner. On January 2, 1996,
the two registrants merged and operations prior to that date were restated to
reflect the combination.
CERTAIN RISK FACTORS
Prospective purchasers should consider carefully, in addition
to the other information contained in this Prospectus, the following factors
before purchasing the Debentures offered hereby.
Seasonality; Weather Conditions
The Company operates in three primary segments; Agriculture,
Retail and the Business Development Group. The Agriculture Group is the
largest segment and its success is highly dependent on the weather in the
eastern corn belt (Ohio, Michigan, Indiana and Illinois), primarily during the
spring planting season through the summer (wheat) and fall (corn and soybean)
harvests. The Group is a merchandiser of grain and a supplier of agricultural
inputs and services.
The Retail Group's business is also highly seasonal with a
majority of sales generated in the fourth quarter, during the holiday season.
The Business Development Group consists of several smaller businesses, the
largest of which is l awn products. This business manufactures and distributes
lawn fertilizer for home and professional use and is highly seasonal with the
majority of its sales occurring in the first and second quarter. Poor weather
conditions during the spring adversely affect consumer purchases of do-it-
yourself lawn care products.
Agribusiness Industry
The recently enacted U. S. Government 1996 Farm Bill removes
government-sponsored price supports and acreage set-asides over the next seven
years and should result in more acres planted, however, the U.S. Government
farm program is subject to change from time to time. The Company's position as
a merchandiser of grain and supplier of agricultural inputs and services may
allow it to benefit if additional acres are planted and additional bushels are
harvested, however, there are no guarantees of additional bushels to handle or
that further changes will not be made to the U.S. farm program.
The Company hedges its grain inventories and contracts in order
to limit its exposure to changing prices. This hedging program includes the
sale of futures contracts on the Chicago Board of Trade and requires the
Company to maintain significant short-term lines of credit with several banks.
In addition to the effect of weather conditions on the
Agriculture Group, the industry is currently experiencing unusual price levels
in the grain commodity markets. This has resulted from several factors
including lower than average 1995 yields and an increase in export demand
resulting in expectations of the lowest carryover stocks in twenty years.
This, coupled with poor weather conditions in the 1996 planting season and a
poor 1996 U. S. wheat crop, have driven prices to re cord levels. The Company
monitors current market conditions and may expand or reduce the purchasing
program in response to changes in those conditions. The Company reviews its
purchase contracts and the parties to those contracts for delivery risk and
provides appropriate reserves for potential defaults and non-delivery. In
addition, the Company has taken measures to monitor and limit margin
requirements from price escalation in the commodity markets.
Grain Purchase Contracts
The Company's grain purchasing program relies on forward
contracts with producers to generate a significant percentage of the bushels it
handles. Forward contracts take many forms and include hybrid cash contracts
(commonly referred to as "Hedged To-Arrive" or "HTA" contracts). These
contracts were developed by grain elevators and merchants in response to
perceived interest by producers in more pricing flexibility and risk management
tools. With the price escalation occurring in the commodity markets (See
"Agribusiness Industry"), most cash contracts held by producers have been
negatively affected. Hybrid cash contracts, while only a subset of forward
contracts used by the Company and the industry as a whole, have recently
received publicity as they have a higher level of risk and are impacted to a
higher degree by futures price escalation.
The Company is actively working with its producers to limit
further deterioration in their contract prices through alternative risk
management tools. As well as reviewing its producer contracts for potential
defaults and non-delivery (See "Agribusiness Industry"), the Company is also
monitoring industry-wide litigation and public comment by regulatory agencies
on this issue. See "Legal Proceedings".
Absence of Public Market for Debentures; Effect of Interest Rate Changes
The Company does not intend to list the Debentures on any
national securities exchange or to seek the admission thereof to trading in the
National Association of Securities Dealers Automated Quotation System. The
Company does not expect any trading market to develop. Accordingly, no
assurance can be given that any market will develop for the Debentures. If a
holder of the Debentures desires to sell, there can be no assurances given that
a willing buyer could be found or at what price they might be sold. In
addition, increases in general interest rates would adversely affect any market
that may develop. See "Description of Debentures".
Subordinated Obligations; Additional Leverage not Restricted
The Company's obligations under the Indenture are subordinate
and junior in right of payment to all senior indebtedness of the Company. The
Debentures are of equal rank with other debenture bonds of the Company due
through 2004 at interest rates ranging from 6.5% to 10%. In addition, the
Indenture does not limit the Company's ability to incur additional indebtedness
or issue other securities which would be senior to the Debentures. See
"Description of Debentures".
Call Feature of the Debentures
The Debentures are redeemable at maturity by the holder for
principal plus accrued interest. The Company has the option to call the
Debentures at any time, paying principal plus interest at the date that they
are called. Thus no assurances can be given that the Debentures will not be
called prior to their maturity date. A holder of the Debentures has no option
to require the Company to purchase their Debentures. See "Description of
Debentures".
Absence of Debenture Rating
The Debentures have not been rated by an independent rating
organization. The Company has no plans to seek such a rating at this time.
LEGAL PROCEEDINGS
The Company, like others in the agricultural industry, utilizes
different types of contracts with producers (including contracts commonly
referred to as "Hedged To-Arrive" or "HTA" contracts) to purchase grain. See
"Certain Risk Factors - Grain Purchase Contracts." Some producers have
recently defaulted or threatened default on certain of these contracts, arguing
that their contracts are unenforceable. The Company believes that this is due,
in large part, to unprecedented high grain prices. The Company currently is
engaged in litigation with several defaulting producers, including one
purported class action filed on May 16, 1996 in the United States District
Court for the Northern District of Illinois, Eastern Division, Case no.
96C2936, Harter, et. al., v. Iowa Grain Company and The Andersons Investment
Services, Corp., d.b.a. The Andersons, Inc., wherein enforceability of the
delivery obligation under certain grain contracts has been raised as an issue.
The Company believes its grain contracts are enforceable obligations and
intends to enforce them. Although no assurance can be given that the current
litigation and proceedings will not result in liability or loss, the Company
believes that it has valid claims and defenses in the lawsuits and proceedings
in which it is involved. Based upon the advice of counsel, management also
believes that it has valid defenses to the purported "class action" nature of
the Harter lawsuit and intends to defend vigorously against the certification
of the class. The Harter lawsuit seeks declaratory and injunctive relief and
compensatory, exemplary and punitive damages of an unspecified amount.
The Commodities Futures Trading Commission, has served
subpoenas duces tecum for the Company to produce certain records and testify in
the matter of "Certain Transactions and Practices Among Grain Elevators, et.
al., Involving Futures Contracts."
In light of the Company's current and prior use of Hedged To-
Arrive contracts, related industry-wide litigation, and current conditions of
the industry as a whole, there can be no assurance that other litigation will
not be brought, that a class will not be certified or that other proceedings
will not be instituted. There currently is no reasonable basis to predict the
amount of future liability or loss, if any, that may arise from such litigation
or proceedings.
USE OF PROCEEDS
The offering is not underwritten and no assurance can be given
as to the amount of proceeds that may be realized by the Company from this
offering or when any such proceeds may be received. The net proceeds from the
sale of the Debentures will be used for the payment of current maturities of
long-term debt as scheduled. Following are the current maturities as of June
30, 1996:
Debenture Bonds, 1996-1997, interest rates ranging
from 7.2% to 10% $5.5 million
Note payable, due quarterly with balance due in 2004,
interest rate 7.84% .3 million
Industrial development revenue bonds:
Due 1999 with annual sinking fund payment, interest rate 6.5% .8 million
Due 2004 with annual payments, variable rate (5.5275 % at
June 30, 1996 .9 million
Other .1 million
Total $7.6 million
Proceeds received from the sale of Debentures will be used
first to retire the previously issued Debentures maturing in the last half of
1996. This represents $3 million of the $5.5 million noted above. Secondly
proceeds will be applied to the $0.9 million annual payment due on the
industrial development revenue bond and thirdly, to the $0.8 million sinking
fund on the remaining industrial development revenue bond. The quarterly
payments on the note payable and the previously issued Debentures maturing in
1997 will be paid from any additional payments received.
If less than $7.4 million of bonds are sold, the Company
expects to fund its current maturities of long-term debt through cash provided
by operations or, if adequate cash is not generated from operations, through
borrowings on the Company's various lines of credit. The Company has available
short-term lines of credit totaling $385 million used primarily to finance
working capital and a long-term revolving line of credit of $20 million. At
June 30, 1996, a total of $131 million was drawn on the available lines of
credit. Any proceeds in excess of $7.4 million will be added to working
capital. The offering is not conditioned upon the sale of any minimum amount
of Debentures.
CAPITALIZATION
The following table sets forth the consolidated capitalization
of the Company in thousands, as of June 30, 1996. No effect has been given in
the table below to the receipt of any proceeds from the offering described
herein, since the amount of proceeds and when the proceeds will be received is
uncertain.
Long-term debt:
Notes payable $ 44,531
Debenture bonds 13,707
Industrial development revenue bonds 12,352
Other 484
Total long-term debt $ 71,074
Minority interest $ 878
Shareholders' equity:
Common shares $ 84
Additional paid-in capital 66,659
Retained earnings 3,387
Total shareholders' equity $ 70,130
Total capitalization $142,082
See Notes 6, 7, 8, 9 and 11 to the Consolidated Financial
Statements for additional information as to the lines of credit, long-term
debt, owners' equity, leases and commitments of the Company.
DESCRIPTION OF DEBENTURES
The Debentures offered hereby are to be issued under an
Indenture, dated as of October 1, 1985, as supplemented by a Fifteenth
Supplemental Indenture, dated as of January 2, 1996, between the Company
(previous Supplemental Indentures were with the Partnership) and Fifth Third
Bank, as Trustee (the "Trustee"). Under the Fifteenth Supplemental Indenture
the current successor Company assumed all Partnership obligations under the
Indenture, including the payment of principal and interest on the previously
issued debentures. Except for the rate of interest and years to maturity, the
terms and conditions of the Debentures, including all debentures previously
issued under the Indenture, are identical. The following summaries of certain
provisions of the Indenture are not complete definitions and are subject to and
qualified by reference to all the provisions of and definitions in the
Indenture, a copy of which is filed as an exhibit to the Registration
Statement. Wherever particular Sections of defined terms of the Indenture are
referred to, it is intended that such Sections or defined terms shall be
incorporated herein by reference.
General
The Debentures are not limited in principal amount by the
Indenture either in the aggregate or as to any series. The Debentures will be
unsecured direct obligations of the Company and any successor entities. In
this connection, the Indenture provides that the Company shall not consolidate
with or merge into any other corporation or convey or transfer its properties
and assets substantially as an entirety to any corporation or other entity or
person, unless the successor expressly assumes, by a supplemental indenture,
the due and punctual payment of the principal of, and interest on, all
outstanding debentures issued under the Indenture, including the Debentures.
Due and punctual payments of principal and interest were assumed by the Company
on all of the outstanding debentures of the Partnership as part of the
Fifteenth Supplemental Indenture and the merger.
Although it has no present plans, understandings or
arrangements, the Company may in the future, in order to meet capital
requirements, issue unsecured debt, which by its terms would be senior to the
Debentures. Upon any insolvency o r bankruptcy proceedings, or any other
receivership, liquidation, reorganization or similar proceedings, the holders
of any such senior debt, or of any secured debt of the Company would be
entitled to receive payment in full before the holders of the Debentures are
entitled to receive any payment of principal or interest on the Debentures.
The Indenture contains no restriction against the issuance by the Company of
additional indebtedness, including unsecured debt senior to the Debentures, or
secured debt. The Debentures are of equal rank with other debenture bonds of
the Company due through 2004 at interest rates ranging from 6.5% to 10%. See
Note 7 of the Notes to the Consolidated Financial Statements with respect to
the Company's secured borrowings.
The Indenture contains no minimum working capital, current
ratio or other such requirements, or any protective provisions in the event of
a highly leveraged transaction. No such transactions are contemplated.
The Debentures will be issued as of the first of the month next
following the month in which payment for the Debentures is received by the
Company. The Debentures offered hereby will be due five years or ten years
from their Original Issue Date, subject to the right of the Company to redeem
the Debentures at any time by payment of the principal amount plus accrued
interest to the date of redemption (Section 1101) and will bear interest at
the rate per annum shown on the front cover of this Prospectus, payable
annually, commencing one year from their Original Issue Date, to the holder of
record at the close of business on the fifteenth day next preceding the
Interest Payment Date. (Section 301.) Principal and interest will be
payable, and the Debentures will be transferable, at the office of the
Trustee, Corporate Trust Services, Mail Drop 1090D2, 38 Fountain Square Plaza,
Cincinnati, Ohio, 45263, provided that any payment of interest or principal
may be made at the option of the Company by check mailed to the address of the
person entitled thereto as it appears on the Debenture Register. (Sections
301 and 307.)
The Debentures will be issued only in fully registered form
without coupons in denominations of $1,000 or any multiple thereof. (Section
302.) No service charge will be made for any transfer or exchange of
Debentures, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith. (Section
305.)
Debentures may be issued in series from time to time upon the
written order of the Company in such aggregate principal amount as is
authorized by the Board of Directors of the Company. (Section 311.) The
Debentures do not provide for any sinking fund. As of June 30, 1996, there
remained outstanding Debentures issued by the Partnership and assumed by the
Company in the merger transaction in the total principal amount of $20 million.
Modification and Waiver
Modification and amendment of the Indenture may be made by the
Company and the Trustee with the consent of the holders of 66 2/3 % in
principal amount of the outstanding Debentures, and, in case one or more but
less than all the series of Debentures issued under the Indenture are so
affected, of at least 66 2/3 % in principal amount of the Debentures of each
series affected thereby consenting as a separate class. No such modification
or amendment may, without the consent of the holder of each Debenture affected
thereby, (a) change the stated maturity date of the principal of, or any
installment of interest on, any Debenture; (b) reduce the principal amount of,
or the interest on, any Debenture; (c) change the place or currency o f payment
of principal or interest on any Debenture; (d) impair the right to institute
suit for the enforcement of any payment on or with respect to any Debenture;
(e) reduce the above-stated percentage of holders of Debentures necessary to
modify or amend the Indenture; or (f) modify the foregoing requirements or
reduce the percentage of outstanding Debentures necessary to waive any past
default to less than a majority. The holders of 66 % in principal amount of
the outstanding Debentures ma y waive compliance by the Company with certain
restrictions. (Sections 902 and 1006.)
Events of Default
The following will be events of default: (a) failure to pay
principal when due; (b) failure to pay any interest when due, continued for 30
days; (c) failure to perform any other covenant of the Company, continued for
60 days after written notice; and (d) certain events in bankruptcy, insolvency
or reorganization. The Trustee may withhold notice to the holders of
Debentures of any default (except in the payment of principal or interest) on
the Debentures if it considers such withholding to be in the interests of the
holders. (Section 501 and 602.)
If a default shall happen and be continuing, either the Trustee
or the holders of at least 25% in principal amount of the Debentures may
accelerate the maturity of all outstanding Debentures, and prior to
acceleration of maturity of t he Debentures, the holders of a majority in
principal amount may waive any past interest. The holders of a majority in
principal amount of the outstanding Debentures may waive a default resulting in
acceleration of the Debentures, but only if all defaults have been remedied
and all payments due (other than by acceleration) have been made. (Sections
502 and 513.)
Each holder of a Debenture has the unconditional right to
receive the payment of principal and interest when due and to institute suit
for the enforcement of such payment. (Section 508.)
The Trustee
Subject to provisions relating to its duties in the case of
default, the Trustee is under no obligation to exercise any of its rights or
powers under the Indenture at the request, order or direction of any holders,
unless such holders have offered to the Trustee reasonable indemnity. (Section
603.) Subject to such provisions for indemnification, the holders of a
majority in principal amount of the outstanding Debentures will be entitled to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or of exercising any trust or power conferred upon
the Trustee. (Section 512.)
The Company is required to furnish to the Trustee annually a
statement as to performance or fulfillment of covenants, agreements or
conditions in the Indenture and as to the absence of default. (Section 1004.)
PLAN OF DISTRIBUTION
This offering of Debentures is not underwritten. There can be
no assurance that any minimum amount of Debentures will be sold pursuant to the
offering contemplated hereby. The Debentures are being sold by the Company for
its own account and no commissions or remuneration will be paid for any selling
activities in connection with the sale of the Debentures contemplated hereby.
LEGAL OPINIONS
The legality of the Debentures offered hereby and matters with
respect to Ohio law have been passed on by Beverly J. McBride, Esq., General
Counsel and Corporate Secretary of the Company. Beverly J. McBride holds
38,001 common shares of the Company as well as options to purchase an
additional 2,910 common shares.
EXPERTS
The consolidated financial statements of The Andersons, Inc. at
January 2, 1996, December 31, 1995 and December 31, 1994 and for each of the
three years in the period ended December 31, 1995, incorporated in this
Prospectus by reference to the Annual Report on Form 10-K of the Company for
the year ended December 31, 1995, have been audited by Ernst & Young LLP,
independent auditors, as set forth in their report thereon and incorporated by
reference herein. Such financial statements are incorporated herein in
reliance upon such report given upon the authority of such firm as experts in
accounting and auditing.
__________________________________________________
No person has been authorized to give any information or to make any
representations other than those contained in this Prospectus, and if given or
made, such information or representations must not be relied upon as having
been authorized. This Prospectus does not constitute an offer to sell or the
solicitation of an offer to buy any securities other than the Debentures to
which it relates or an offer to or solicitation of any person in any
jurisdiction in which such offer or solicitation is unlawful. Neither the
delivery of this prospectus nor any sale made hereunder shall under any
circumstances imply that information contained herein is correct at any time
subsequent to its date. The Registrant will comply with its obligations under
applicable securities laws to file and deliver any necessary supplement to this
Prospectus.
PART II
Information Not Required in Prospectus
Item 14. Other Expenses of Issuance and Distribution
The following are additional estimated expenses of the offering
described in the Prospectus:
Printing $ 3,000
Accounting fees 5,000
Legal fees 10,000
Blue Sky Qualifications and Expenses 3,000
Securities and Exchange Commission filing fees 3,448
Miscellaneous 1,000
Total $25,448
Item 15. Indemnification of Directors and Officers.
Section 1701.59 of the Ohio General Corporation Law, inter
alia, empowers an Ohio corporation to indemnify any person who was or is a
party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding (other than an action by or in the right
of the corporation) by reason of the fact that such person is or was a
director, officer, employee or agent of the corporation or is or was serving at
the request of the corporation as a director, officer, employee or agent of
another corporation or other enterprise, against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by him or her in connection with such action, suit or proceeding if he
or she acted in good faith and in a manner he or she reasonably believed to be
in or not opposed to the best interests of the corporation, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe his or
her conduct was unlawful. Similar indemnity is authorized for such person
against expenses (including attorneys' fees) actually and reasonably incurred
in connection with the defense or settlement of any such threatened, pending or
completed action or suit if such person acted in good faith and in a manner he
or she reasonably believed to be in or not opposed to the best interests of the
corporation, and provided further that (unless a court of competent
jurisdiction otherwise provides) such person shall not have been adjudged
liable to the corporation. Any such indemnification may be made only as
authorized in each specific case upon a determination by the shareholders or
disinterested directors or by independent legal counsel in a written opinion
that indemnification is proper because the indemnitee has met the applicable
standard of conduct.
Section 1701.59 further authorizes a corporation to purchase
and maintain insurance on behalf of any person who is or was a director,
officer, employee or agent of the corporation, or is or was serving at the
request of the corporation as a director, officer, employee or agent of another
corporation or enterprise, against any liability asserted against him or her
and incurred in any such capacity, or arising out of his or her status as such,
whether or not the corporation would
otherwise have the power to indemnify him or her under Section 1701.59. The
Company maintains policies insuring its and its subsidiaries' officers and
directors against certain liabilities for actions taken in such capacities,
including certain liabilities under the Securities Act of 1933.
Article IV of the Code of Regulations of the Company provides
for indemnification of the directors and officers of the Company to the full
extent permitted by law, as now in effect or later amended. In addition, the
Code of Regulations provide for indemnification against expenses incurred by a
director or officer to be paid by the Company in advance of the final
disposition of such action, suit or proceeding; provided, however, that if
required by the Ohio General Corporation La w, an advancement of expenses will
be made only upon receipt of an undertaking by or on behalf of the director or
officer to repay such amount if it shall be ultimately determined that he or
she is not entitled to be indemnified by the Company. The Code of Regulations
further provide for a contractual cause of action on the part of directors and
officers of the Company with respect to indemnification claims which have not
been paid by the Company.
Article Sixth of the Company's Restated Articles of
Incorporation limits to the fullest extent permitted by the Ohio General
Corporation Law as the same exists or may have been amended, the personal
liability of the Company's director s to the Company or its shareholders for
monetary damages for a breach of their fiduciary duty as directors. Section
1701.59 of the Ohio General Corporation Law currently provides that such
provisions do not eliminate the liability of a director (i) for a breach of the
director's duty of loyalty to the Company or its shareholders; (ii) for acts or
omissions not in good faith or which involve intentional misconduct or a
knowing violation of law; (iii) under Section 1701.59 of the Ohio General
Corporation Law (relating to the declaration of dividends and purchase or
redemption of shares in violation of the Ohio General Corporation Law); or (iv)
for any transaction from which the director derived an improper personal
benefit.
Item 16. Exhibits.
Exhibit
Number Description
3.1 Articles of Incorporation (Incorporated by reference to Exhibit
3.3 to Registration Statement No. 33-58963).
3.2 Code of Regulations (Incorporated by reference to Exhibit 3.4
to Registration Statement No. 33-58963).
4.1 Form of Indenture dated as of October 1, 1985, between The
Andersons and Ohio Citizens Bank, as Trustee. (Incorporated
by reference to Exhibit 4(a) in Registration Statement No. 33-
819).
4.2 The Fifteenth Supplemental Indenture dated as of January 2,
1996, between The Andersons, Inc. and Fifth Third Bank,
successor Trustee to an Indenture between The Andersons and
Ohio Citizens Bank, dated as of October 1, 1985 (Incorporated
by reference to Exhibit 4.4 to registrant's 1995 Annual Report
on Form 10-K).
5.1 Opinion of Beverly J. McBride, dated May 21, 1996, as to the
validity of the securities being registered hereby.
12 Computation of Ratio of Earnings to Fixed Charges.
23.1 Consent of Independent Auditors.
23.2 Consent of Beverly J. McBride (included in the opinion filed as
Exhibit 5.1).
24.1 Powers of Attorney (included on signature page).
25 Statement of Eligibility and Qualification on Form T-1 of Fifth
Third Bank, as Trustee under the Trust Indenture Act of 1939
(Incorporated by reference to Exhibit 26 in Registration
Statement 33-62442).
Item 17. Undertakings.
The undersigned registrant hereby undertakes:
(a) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration
statement to include any material information with respect to
the plan of distribution not previously disclosed in the
registration statement or any material change to such
information in the registration statement;
(b) That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective
amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(c) To remove from registration by means of a post-
effective amendment any of the securities being registered
which remain unsold at the termination of the offering.
(d) That, for the purposes of determining any liability
under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to section 13(a) or section
15(d) of the Securities Exchange Act of 1934 that is
incorporated by reference in the registration statement shall
be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide
offering thereof.
(e) To file an application for the purpose of determining
the eligibility of the trustee to act under subsection (a) of
section 310 of the Trust Indenture Act ("Act") in accordance
with the rules and regulations prescribed by the Commission
under section 305(b)(2) of the Act.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
registrant has duly caused this Amendment No. 4 to Registration Statement to
be signed on its behalf by the undersigned, thereunto duly authorized, in the
City of Maumee , State of Ohio, on this 13th day of August, 1996.
THE ANDERSONS, INC.
By: /s/Richard P. Anderson
Richard P. Anderson
President and Chief Executive
Officer
Pursuant to the requirements of the Securities Act of 1933,
this Amendment No. 4 to Registration Statement has been signed by the following
persons in the capacities and on the dates indicated.
Signature Title
/s/Richard P. Anderson*
Richard P. Anderson
President and Chief Executive Officer, Director
/s/Richard M. Anderson*
Richard M. Anderson
Director
/s/Thomas H. Anderson*
Thomas H. Anderson
Chairman of the Board, Director
/s/John F. Barrett*
John F. Barrett
Director
/s/Gary L. Smith*
Gary L. Smith
Corporate Treasurer
/s/Paul M. Kraus*
Paul M. Kraus
Director
/s/Richard R. George*
Richard R. George
Corporate Controller and Principal Accounting
Officer
/s/Donald M. Mennel*
Donald M. Mennel
Director
/s/Donald E. Anderson*
Donald E. Anderson
Director
/s/David L. Nichols*
David L. Nichols
Director
/s/Michael J. Anderson*
Michael J. Anderson
Director
*By: /s/Thomas H. Anderson
Attorney-in-fact
SUBSCRIPTION AGREEMENT
FOR 7.7 % TEN-YEAR DEBENTURES AND 7.0 % FIVE-YEAR DEBENTURES OF
THE ANDERSONS, INC.
(I) (We) hereby subscribe for:
____________________________ multiple(s) of 7.7 % Ten-Year Debentures
____________________________ multiple(s) of 7.0 % Five-Year Debentures
of The Andersons, Inc. at face value. Each multiple is $1,000. Herewith find
$__________________ in full payment thereof.
The Debentures should be registered and issued in the following mode of
ownership: (ONLY ONE MODE OF OWNERSHIP MAY BE SELECTED)
1. ________________________ an individual.
(Name)
2. ________________________ and ________________________ as joint
(Name) (Name)
tenants with right of survivorship and not as tenants in
common.
3. ________________________ and ________________________ as
(Name) (Name)
tenants in common.
4. ________________________ as custodian for ___________________
(Name) (Name)
under the Uniform Gifts to Minors Act, as applicable.
5. ________________________ trustee for _____________________.
(Name) (Name)
I acknowledge receipt of a copy of the current Prospectus of The
Andersons, Inc. with respect to the offering of the above Debentures subscribed
for hereby which will be issued, and interest will begin to accrue, as of the
first day of the mo nth following the month in which payment of the Debentures
has been received by the Andersons, Inc. Under the penalties of perjury, I
certify that the information listed below is true, correct and complete.
Dated_________________________ Signed__________________________________
Signed__________________________________
Please print name, address, social security number and telephone number
of registered owner(s).
_____________________________________ _________________________________
(Name) (Name)
_____________________________________ _________________________________
(Street) (Street)
_____________________________________ _________________________________
(City, State and Zip Code) (City, State and Zip Code)
_____________________________________ _________________________________
(Social Security Number or (Social Security Number or
Federal I.D. Number) Federal I.D. Number)
_____________________________________ _________________________________
(Area Code)(Telephone Number) (Area Code)(Telephone Number)
Make check payable to: The Andersons, Inc.
Mail to: The Andersons, Inc. For tax reporting purposes, the
Corporate Treasurer following Social Security or
P. O. Box 119 Federal I.D. number should be used:
Maumee, Ohio 43537 ___________________________________
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 4177
<SECURITIES> 0
<RECEIVABLES> 94225
<ALLOWANCES> 5615
<INVENTORY> 173976
<CURRENT-ASSETS> 274906
<PP&E> 214833
<DEPRECIATION> 133603
<TOTAL-ASSETS> 361898
<CURRENT-LIABILITIES> 212396
<BONDS> 33781
0
0
<COMMON> 84
<OTHER-SE> 70046
<TOTAL-LIABILITY-AND-EQUITY> 361898
<SALES> 600540
<TOTAL-REVENUES> 601942
<CGS> 520230
<TOTAL-COSTS> 520230
<OTHER-EXPENSES> 66847
<LOSS-PROVISION> 2443
<INTEREST-EXPENSE> 9162
<INCOME-PRETAX> 5703
<INCOME-TAX> 3054
<INCOME-CONTINUING> 2649
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2649
<EPS-PRIMARY> 0.31
<EPS-DILUTED> 0.31
</TABLE>
Exhibit 23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Experts" and to the
use of our report dated February 2, 1996, in Amendment No. 4 to the Registration
Statement (Form S-3 No. 333-4213) and related Prospectus of The Andersons, Inc.
for the registration of $10,000,000 of its debentures.
/s/Ernst & Young LLP
Ernst & Young LLP
Toledo, Ohio
August 13, 1996
<TABLE>
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
THE ANDERSONS, INC.
<S> <C> <C> <C> <C> <C> <C> <C>
Six Months
(In thousands, except for ratio) Ended June 30 Year Ended December 31
1996 1995 1995 1994 1993 1992 1991
Income from continuing operations $5,703 $4,649 $10,188 $15,171 $11,080 $10,045 $ 4,506
Add:
Interest expense on indebtedness 9,162 6,317 14,019 8,395 6,168 6,325 7,298
Interest portion of rent expense 1,131 1,193 2,324 2,321 2,395 2,485 2,342
Earnings $15,996 $12,159 $26,531 $25,887 $19,643 $18,855 $14,146
Computation of Fixed Charges
Interest expense on indebtedness 9,162 6,317 14,019 8,395 6,168 6,325 7,298
Interest portion of rent expense 1,131 1,193 2,324 2,321 2,395 2,485 2,342
Fixed Charges $10,293 $7,510 $16,343 $10,716 $ 8,563 $ 8,810 $ 9,640
Ratio of earnings to fixed charges 1.55 1.62 1.62 2.42 2.29 2.14 1.47
</TABLE>
