Bunge 2004 Annual Report
[partnering for the future][financial highlights][letter to shareholders][our global strategy][financial performance][worldwide locations][shareholder information]

Common Share Market and Dividends
Five-Year Summary of Selected Financial Data
Management's Discussion and Analysis of Financial Condition and Results of Operations
Consolidated Statements of Income
Consolidated Balance Sheets
Consolidated Statements of Cash Flows
Consolidated Statements of Shareholders' Equity
Notes to the Consolidated Financial Statements
Management's Report on Internal Control Over Financial Reporting
Reports of Independent Registered Public Accounting Firm
Financial Performance
notes to the consolidated
financial statements
22. redeemable preferred stock
In 2000, Bunge First Capital Limited (First Capital), a consolidated subsidiary of Bunge, issued 170,000 $.01 par value shares of cumulative variable rate redeemable preferred shares to private investors for $170 million. First Capital used the net proceeds of $163 million to make loans to subsidiaries of Bunge for their working capital requirements. The results of First Capital are included in Bunge's consolidated financial statements and all intercompany transactions are eliminated. The holders of the preferred shares were entitled to receive cumulative variable rate cash dividends paid quarterly. The amount of the dividend was calculated based on alternative benchmark financing rates, certain actual expenses and a return. If more than one quarterly dividend went unpaid, and on the occurrence of certain other events, the preferred shareholders were entitled to require First Capital to arrange for the sale of the preferred stock to third parties on behalf of the preferred shareholders based on the issue price plus accrued and unpaid dividends, or take certain other actions to protect the interests of the preferred shareholders.

First Capital is a separate legal entity from Bunge and has separate assets and liabilities. First Capital retained the right to redeem the preferred stock, in whole or in part, for the issue price plus accrued and unpaid dividends. In November 2004, First Capital exercised its right and redeemed the 170,000 redeemable preferred shares for $170 million plus accrued and unpaid preferred dividends through October 31, 2004 of approximately $1 million. The redemption was financed by the prepayment of an outstanding term loan due First Capital from one of Bunge's subsidiaries. First Capital has been released of any future obligations related to these redeemable preferred shares. The carrying value and subsequent redemption of these preferred shares was reflected in minority interest in the consolidated balance sheets at December 31, 2004 and 2003.

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