Olam plans rights issue of bonds with warrants

Olam International, the Singapore-listed supply chain manager and processor of agricultural products that has come under attack by short-seller Muddy Waters, is planning a renounceable rights issue of bonds with warrants that could result in a combined cash inflow of about $1.21 billion.

In an announcement issued late last night the company said it will offer $750 million worth of five-year bonds with a 6.75% coupon to its existing shareholders. The bonds will issued at 95% of the principal value resulting in total proceeds for $712.5 million. Attached to the bonds will be approximately 387.365 million warrants that can each be converted into one share at an exercise price...