Olam's 6% convertibles putable and convertible with change of control

By Marisa Wong

Madison, Wis., May 27 - Olam International Ltd. issued a notice to holders of its $500 million 6% convertible bonds due 2016 that a change of control occurred on May 23.

Specifically, Breedens Investments Pte. Ltd. and Aranda Investments Pte. Ltd., both indirect wholly owned subsidiaries of Temasek Holdings (Private) Ltd., have collectively acquired more than 50% of Olam's issued ordinary shares. As a result, Temasek now has a deemed interest of more than 50% of Olam's issued share capital.

Due to this change of control, holders may convert all or some of their bonds between May 26 and June 25 at the change-of-control conversion price of S$2.74.

The conversion price prior to the change-of-control conversion period was S$2.98, and after the change-of-control conversion period ends the price will revert to S$2.98.

Holders may also put their bonds at par plus accrued interest up to but excluding Aug. 8, the change-of-control redemption date.

Holders must deliver put notices by July 25.

Bank of New York Mellon, London Branch is the agent.

The company's $250 million 7½% bonds due 2020 are also putable as a result of the change of control.

Olam is a food processing company based in Singapore.

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