Olam gets US$5.2B financing to facilitate reorganisation

U.S. one-dollar and five-dollar currency notes; taken September 2018.U.S. one-dollar and five-dollar currency notes; taken September 2018.

Olam International has secured three committed loan facilities for a total of US$5.2 billion, the Singapore-listed agribusiness said in a filing to SGX Tuesday.

“This landmark transaction gives us significant flexibility to allocate financing across our three new operating groups as part of our reorganisation plan. We thank our banking partners for their strong commitment and support,” N Muthukumar, Olam’s group chief financial officer, said in the statement.

The three facilities include a US$1.2 billion three-year term loan and two 18-month bridge loan facilities of US$2 billion each, Olam said. The term loan facility will be used for general corporate purposes, while the bridge loans will be used to facilitate the company’s reorganisation plan, the filing said.

The terms of the deals include provisions allowing Olam to allocate the facilities to Olam Food Ingredients (OFI), Olam Global Agri (OGA) and Olam International (OIL) operating groups once they are separated and after the planned initial public offering of OFI, the filing said.

All of the facilities will be guaranteed by Olam, the filing said.

Citibank, J.P. Morgan Chase Bank, MUFG Bank and HSBC participated as senior mandated lead arrangers for the facilities, while HSBC was the facility agent, the filing said.