By Rebecca Melvin
New York, June 5 - Olam International Ltd. priced $300 million of 1% five-year senior, unsecured convertibles at par to yield 4.5% with an initial conversion premium of 30%, according to a news release.
The convertibles priced at the cheap end of talk, which was 0.5% to 1% for the coupon and 30% to 35% for the initial conversion premium.
There is a greenshoe of $100 million.
J.P. Morgan (S.E.A) Ltd. and Macquarie Capital (Singapore) Pte. Ltd. are joint lead managers.
The bonds are non-callable for three years and provisionally callable thereafter subject to a 130% trigger. There is a put in year three. The bonds also include dividend and takeover protection.
Proceeds are expected to be used to refinance existing debt, to fund acquisitions and for general corporate purposes.
Olam is a Singapore-based integrated supplier of agricultural products and food ingredients.
| Issuer: | Olam International Ltd.
|
| Issue: | Convertible senior, unsecured bonds
|
| Amount: | $300 million
|
| Greenshoe: | $100 million
|
| Maturity: | July 3, 2013
|
| Bookrunners: | J.P. Morgan (S.E.A.) Ltd. and Macquarie Capital (Singapore) Pte. Ltd.
|
| Coupon: | 1%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 30%
|
| Conversion price: | S$3.8464
|
| Price talk: | 0.5%-1%, up 30%-35%
|
| Calls: | Non-callable for three years, soft call thereafter at 130% price trigger
|
| Puts: | In year 2011
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | June 4
|
| Settlement date: | July 3
|
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