olam-launches-150-million-cb-buyback-tender

Olam launches $150 million CB buy-back tender

The tender, which will permit investors to offload the poorly trading bonds and allow the company to make a profit, follows a similar offer by Korea's KCC.
Olam International, a global integrated supply chain manager of agricultural products and food ingredients, yesterday launched a tender to buy back up to $150 million of the $300 million five-year convertible bonds that it issued in early June. The bonds have traded poorly in the secondary market from day one as the sale came right when sentiment for commodities started to turn sour, resulting in significant selling pressure on OlamÆs share price.

The virtual shutdown of global credit markets since the collapse of Lehman Brothers in mid-September added further pressure across the Asian CB universe and, at one point, the Olam CB was quoted in the low 40s. The latest quote puts it at 50...
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