Malaysia's KLK gets extension to April 2 to sell up to $300 million five-year exchangeables

By Jennifer Chiou

New York, Oct. 10 - Malaysia's Kuala Lumpur Kepong Bhd. announced that it obtained approval for an extension until April 2 to issue its previously announced offering of five-year unsecured guaranteed exchangeable bonds.

The company announced plans to sell up to $300 million of the bonds on Feb. 26, 2008.

There is now an over-allotment option for $100 million of additional bonds.

The bonds will be issued by KLK's wholly owned subsidiary, KLK Capital Resources Ltd.

EMC Libra Investment Bank Bhd. and Credit Suisse (Hong Kong) Ltd. are joint lead arrangers and joint bookrunners of the deal.

EMC Libra is the domestic adviser of the Regulation S deal.

As already reported, proceeds are intended to be used to refinance existing bank borrowings and for working capital.

Future cash settlement of the bonds upon maturity can be offset directly against the company's revenue from its palm oil-based products sales, which are denominated in dollars.

Malaysia-based KLK is primarily a palm oil producer involved in plantation, manufacturing, retailing and property development.

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