Olam upsizes flagship debt facility to US$1.98b

AGRI-FOOD giant Olam International has upsized its flagship debt facility by US$300 million to US$1.98 billion, and will use it to refinance existing loans, said the group in a statement on Tuesday.

Four new banks have joined Olam's multi-tranche revolving credit facility that was first secured on Sept 10, 2020. Bank of Baroda has come on as a senior mandated lead arranger; Bank of China and Unicredit Bank are mandated lead arrangers, and Westpac Banking Corporation as a lead arranger, taking the total banking group to 25 banks.

The upsized facility, which has Olam's subsidiary Olam Treasury as a co-borrower, comprises three tranches - a 364-day revolving credit facility of US$790 million, a two-year revolving credit facility of US$790 million, and a three-year revolving credit facility of US$395 million.

"Proceeds from the facility will be applied towards refinancing of existing loans of Olam and its subsidiaries," said the group.

Shares of Olam closed trading at S$1.30 on Tuesday, up S$0.03 or 2.4 per cent.