Olam International launched a consent solicitation and exchange offer regarding its SGD and USD denominated bonds following the completion of a corporate reorganization. The bonds in question are the following: (i) $300mn 4.375% bonds due 2023 (ii) S$500mn 6% bonds due 2022s (iii) S$600mn 4% bonds due 2026s (iv) S$350mn 5.5% Perp (v) S$550mn 5.375% Perp.
Regarding the consent solicitation, bondholders of the USD 2022s, SGD 2023s and the SGD 2026s have been asked to waive any event of default or potential event of default. Holders of the USD 2023s, the SGD 5.5% Perp and SGD 5.375% Perp have been asked to approve the substitution of Olam International with Olam Group as the issuer, and to release Olam International from all obligations and liabilities. Separately, holders of the SGD 5.5% Perps have been invited to exchange any/all of their bonds to be consolidated and form a single series with its SGD 5.375% Perp. The early consent deadline being January 31. The entire consent solicitation and exchange offer closes on February 7.
Olam has done a reorganization with the creation of three businesses – Olam Food Ingredients (OFI), Olam Global Agri (OGA) and its OIL unit. Here, OFI would remain under Olam International, while OGA and its OIL unit will be under Olam Group, new holding company operating independent of Olam International.
Olam’s bonds were flat with its SGD 5.5% Perp at 100.94, yielding 3.46%.