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...

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