Olam to buy back $117.6 million of convertibles at 65

New York, Dec. 10 - Olam International Ltd. said it will buy back $117.6 million principal amount of its 1% convertible bonds due 2013 at a price of 65 in its tender offer.

The company said it received "strong interest," with more than 60 bids submitted.

At the clearing price, Olam will pay a total of $76.44 million in cash for the bonds it is buying back.

Following settlement, expected on Dec. 17, there will be $182.4 of the original $300 million of convertibles still outstanding.

The tender began at 8 p.m. ET on Dec. 3 and ended at 11 p.m. ET on Dec. 4.

J.P. Morgan (S.E.A.) Ltd. is tender agent.

Repurchase of the bonds will be funded by a new three-year term loan.

"Olam is committed to the prudent management of its balance sheet and current market conditions afforded us an opportunity to reduce outstanding debt, reduce refinancing risk, strengthen our balance sheet and deliver value to our shareholders," said Sunny Verghese, Olam's group managing director and chief executive officer, in a news release.

Olam is a Singapore-based supplier of agricultural products and food ingredients.

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