Olam Issues Convertible Bonds
Olam International Limited announces today that the Company has on 4 June 2008 entered into a subscription agreement for the issue of Convertible Bonds with J.P. Morgan(S.E.A) Limited and Macquarie Capital (Singapore) Pte Ltd, as the joint lead managers.
Under the terms of the Subscription Agreement, the Company has agreed to issue as
issuer, and the Joint Lead Managers have severally agreed to subscribe and/or procure
subscriptions for an aggregate of US$300,000,000 Convertible Bonds due 3 July 2013 at an issue price of 100% of the principal amount of the Convertible Bond.
Each Convertible Bond will, at the option of the relevant holder, be convertible (unless previously redeemed, converted or purchased and cancelled) into fully paid ordinary shares of the Company at an initial conversion price of S$3.8464 per Share.
Yield-to-Put /Yield-to-Maturity : 4.50 per cent. per annum
The Convertible Bonds will be redeemed at 119.38 % of their principal amount on the Maturity
Date.
The Company intends to use the proceeds to finance investments, joint ventures, mergers and acquisitions in relation to the expansion of the Group's business, to discharge, reduce or retire certain bank borrowings and loans, and/or for general working capital and general corporate purposes.
Olam opens this morning at S$2.75/share, 23 cents down from yesterday.
Under the terms of the Subscription Agreement, the Company has agreed to issue as
issuer, and the Joint Lead Managers have severally agreed to subscribe and/or procure
subscriptions for an aggregate of US$300,000,000 Convertible Bonds due 3 July 2013 at an issue price of 100% of the principal amount of the Convertible Bond.
Each Convertible Bond will, at the option of the relevant holder, be convertible (unless previously redeemed, converted or purchased and cancelled) into fully paid ordinary shares of the Company at an initial conversion price of S$3.8464 per Share.
Yield-to-Put /Yield-to-Maturity : 4.50 per cent. per annum
The Convertible Bonds will be redeemed at 119.38 % of their principal amount on the Maturity
Date.
The Company intends to use the proceeds to finance investments, joint ventures, mergers and acquisitions in relation to the expansion of the Group's business, to discharge, reduce or retire certain bank borrowings and loans, and/or for general working capital and general corporate purposes.
Olam opens this morning at S$2.75/share, 23 cents down from yesterday.