Olam International announced that it has received approval from its SGD bondholders to waive potential events of defaults and to replace the issuer to Olam Group, as part of a consent solicitation that ended with a meeting on Wednesday. The SGD bonds in question are its S$500mn 6% 2022s, S$600mn 4% 2026s, S$350mn 5.5% perps callable in July 2022 and S$550mn 5.375% perps callable in July 2026, IFR reports. This would pave the way for the proposed restructuring of the Singapore-listed agri-business into Olam Food Ingredients (OFI), Olam Global Agri and Olam International, and the carve-out, separation, demerger and IPO of OFI.
The company however failed to get quorum among holders of its $300mn 4.375% 2023s – Olam International will continue to remain the issuer on the notes that mature in less than a year on January 9. With regards to the exchange offer launched on its SGD 5.5% perps, Olam said that holders of S$54.5mn had accepted the exchange for the 5.375% perps callable in July 2026, leaving an amount outstanding on its 5.5% perps of S$295.5mn. The amount outstanding on its 5.375% perps will increase to S$604.5mn.
Olam’s SGD 5.375% perps are trading stable at 95.11 yielding 6.67%.