By Marisa Wong
Madison, Wis., Feb. 23 - Olam International Ltd. announced that it priced S$275 million of perpetual capital securities.
The securities were priced at par and bear an initial distribution rate of 7%. The distribution rate will be reset every 10 years.
The securities are callable after five years.
DBS Bank Ltd., J.P. Morgan (SEA) Ltd. and UBS AG, Singapore Branch are the joint lead managers and joint bookrunners.
The company said that the offer was oversubscribed and that most of the investors are based in Singapore.
Proceeds will be used for general corporate purposes, refinancing existing borrowings and working capital requirements as well as to finance capital expenditure and expand Olam's supply chain management business.
Olam is a Singapore-based supply chain manager and processor of agricultural products and food ingredients.
| Issuer: | Olam International Ltd.
|
| Issue: | Perpetual capital securities
|
| Amount: | S$275 million
|
| Maturity: | Perpetual
|
| Coupon: | 7%, reset after 10 years
|
| Price: | Par
|
| Yield: | 7%
|
| Call option: | After five years
|
| Bookrunners: | DBS Bank Ltd., J.P. Morgan (SEA) Ltd. and UBS AG, Singapore Branch
|
| Announcement date: | Feb. 23
|
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