AGRIBUSINESS | Staff Reporter, Singapore

Olam issues $249m worth of notes

Those are 5-year fixed rate notes in a private placement.

Olam International Ltd. has successfully priced $249m (US$175m) of 5-year fixed rate notes in a private placement through its wholly-owned subsidiary Olam Americas Inc.

Due to strong demand, the notes which were initially offered were oversubscribed by US$75 million.

"The Notes were placed to six investors in the US at a spread of 199 basis points over the 5-year US treasury rate, which translates to a fixed coupon of 3.90% for 5 years," Olam said in a statement.

Proceeds from the issue of the said notes will be used by Olam's subsidiary for repayment of existing bank debt and general corporate purposes. Closing and funding of the transaction will occur in January 2017.

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