Tuesday, February 17, 2009

Daily news - 17 Feb

Olam again offers bond-exchange plan for notes due in 2013
Olam International Ltd offered holders of US$176.4 million of convertible bonds due in 2013 an option to exchange them for replacement bonds at 78 per cent of the principal to reduce borrowings and help preserve cash. The Singapore-based agricultural commodities supplier would 'benefit from an immediate reduction in leverage' should the plan be accepted, according to a statement yesterday. It may also 'recognise a gain by retiring debt below par,' it said. Companies worldwide are attempting to reduce borrowings amid the credit crunch to strengthen their balance sheets and help ride out the global recession. The bond-swap plan is the second time in three months Olam has offered holders fresh terms after buying back bonds in December to generate a one-time gain.

Source: Kim Eng

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