Olam secures $ 7 billion in loans as restructuring plan advances

SINGAPORE (THE BUSINESS TIMES) – Food giant Olam International has secured $ 5.2 billion (S $ 7 billion) in loans in part to support its business reorganization plans, the listed company said on Tuesday evening. the motherboard on file at the Singapore Stock Exchange (August 31).

The three facilities include a three-year US $ 1.2 billion term loan and two 18-month bridge credit facilities of US $ 2 billion each.

The term credit facility will be used for general corporate purposes of the Olam group while the bridge credit facilities will be used to facilitate Olam reorganization plans.

Olam had announced that it plans to list Olam Food Ingredients (OFI) by the first half of next year as part of its ongoing business reorganization. OFI includes the company’s cocoa, coffee, edible nuts, spices and dairy businesses.

The terms of the three installation agreements include provisions that allow Olam to assign the facilities to the OFI, Olam Global Agri and Olam International operating groups upon the spin-off and registration of OFI.

Olam Group Chief Financial Officer N. Muthukumar said in a statement: “This landmark transaction gives us significant flexibility to allocate funding to our three new operating groups as part of our reorganization plan. We thank our banking partners for their commitment and unfailing support. “

The term loan and one of the bridge credit facilities have OFI entities as co-borrowers, while the second bridge loan has entities of Olam Global Agri and Olam International as co-borrowers. additional co-borrowers. All installations are guaranteed by Olam.

Citibank, JP Morgan Chase Bank, MUFG Bank and HSBC Bank participated as lead arrangers commissioned for the facilities. HSBC is the settlement agent.

Olam shares closed on Tuesday unchanged at $ 1.60.

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