Daily news - 5 Nov

Olam to buy back up to US$150m of bonds
Olam International – Agriculture supply chain manager Olam International plans to repurchase up to US$150 million of its convertible bonds after prices more than halved since July. Investors reacted positively to the news, pushing Olam shares up 9.5 cents or 10.8 per cent to close at 97.5 cents yesterday. Olam had launched US$300 million of convertible bonds in July. Due in 2013, the bonds bear an annual coupon of one per cent and a yield-to-maturity of 4.5 per cent per annum. Bondholders can convert the instruments into ordinary Olam shares at an initial conversion price of $3.8464. Unless redeemed, converted or purchased and cancelled, the bonds would be redeemed at 119.38 per cent of their principal amount on maturity. In the past few months however, prices of the convertible bonds have fallen to US$0.46 on the dollar, according to Bloomberg data as at Dec 3.

Source: Kim Eng