olam-reoffers-cb-after-investors-baulk-at-aggressive-terms

Olam re-offers CB after investors baulk at aggressive terms

The soft commodities supply chain manager is forced to increase the coupon, lower the conversion premium and re-offer the deal at 98% after the bookrunners get the pricing wrong.

Olam International late last night revised the terms on a $400 million convertible bond that it offered to the market in the mid-afternoon after investors deemed the original terms too aggressive. The revisions resulted in a higher coupon and a lower conversion premium and, on top of that, the bonds were also re-offered at 98% of par to all investors, making this the first Asian CB since 2007 to be re-offered.

However, the original structure with a seven-year maturity and no put was kept in place, which means Olam, a Singapore-listed integrated supply chain manager of agricultural products with a direct presence in 60 countries, was able to raise financing to match the new six-year...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222