indonesian-palm-oil-producer-first-resources-issues-100-million-cb

Indonesian palm oil producer First Resources issues $100 million CB

The convertible is well-received by both outright investors and hedge funds despite coming on the back of a near 300% gain in First Resources' share price since the March lows.

Indonesian crude palm oil CPO producer First Resources last night raised $100 million from the sale of five-year convertible bonds to finance its organic growth, including the development and plantation of new land acquired in 2008.

The deal was well-received by both outright investors, who like the company's low-cost production, better than average Ebitda margins and strong financial profile, and hedge funds, which welcomed the fact that the majority shareholder was making stock available for borrowing. This left the offering about 3.5 times covered and allowed the terms to be fixed inside the best end for investors.

First Resources is the second Indonesia-based issuer to sell CBs this year following Bumi Resources' $375 million deal...

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