Olam offers to seed senior unsecured notes at 4.5%
The company needs fund for paying financial obligations.
Olam International proposes to issue S$202.1 million (US$150 million) senior unsecured notes at a fixed rate of 4.5% due 2021 as it tries to gather funds for debt repayment.
Olam revealed that the new offer will be consolidated with the existing US$300 million senior unsecured notes also at 4.5% to form the Series 10 Tranche 002 Notes.
“The Series 10 Tranche 002 Notes were priced at 101.651% of their principal amount plus accrued interest from, and including, 12 April 2016 to, but excluding, the issue date for the Series 10 Tranche 002 Notes. The Series 10 Tranche 002 Notes will bear interest at a fixed rate of 4.50% per annum payable semi-annually in arrears,” Olam explained.
The group will use the proceeds from the series for general corporate purposes including payment of existing debt.
The Series 10 Tranche 002 Notes are expected to be issued on 14 September 2016.