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Olam's bonds rise after fund-raising plan unveiled
HONG KONG |
HONG KONG Dec 3 (Reuters) - Olam International Ltd's bonds due 2017 rose as debt markets gave a thumbs up to the Singaporean commodities trader's fund raising plan, unveiled after an attack by short-seller Muddy Waters triggered a sell off in its stock and bonds.
The Olam 2017 bonds jumped to 91/94 cents on the dollar from 89/90 after announcement of the plan, which is raising $712.5 million through an issue of bonds with warrants to buy shares.
The 2017 bonds, which are the most actively traded since they were issued only in September, are once again trading below 8 percent, not far from their levels before Muddy Waters' allegations two weeks ago that Olam's aggressive spending, accounting practices and debt levels had left it on the verge of collapse.
Yields had risen as high as 10 percent during the sell off. The bonds were issued at a yield of 5.75 percent in September. (Reporting by Umesh Desai; Editing by Edmund Klamann)
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