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(Adds $600 million share sale plans from third paragraph.)
June 6 (Bloomberg) -- Olam International Ltd. is offering to pay as much as 364 basis points more than the London interbank offered rate for a $1.25 billion loan facility, according to a person familiar with the matter.
The supplier of food commodities, based in Singapore, has given banks until July 4 to respond, the person said, asking not to be identified because the details are private.
Olam is offering an all-in payment of 364 basis points more than Libor on a five-year portion of the $1.25 billion loan, the person said. A three-year portion will pay an all-in rate of 258 basis points more than Libor, the person said.
Olam, which is building a $1.3 billion fertilizer plant in the Republic of Gabon, is expanding its assets with palm-oil plantations, sugar refineries and wheat milling to meet African and Asian demand for commodities. It plans to raise $600 million in a share sale to fund acquisitions, three people with direct knowledge of the transaction said today.
The company is offering $200 million of new shares at S$2.60 ($2.12) apiece and another $200 million to part-owner Temasek Holdings Pte., Singapore’s state-owned investment company, at the same price, the three people said.
A further $200 million of shares will be sold to existing shareholders at S$2.56 apiece, they said.
Banks contributing to the $1.25 billion facility, which is in the process of being marketed to other lenders, include Australia and New Zealand Banking Group Ltd., Commerzbank AG, Rabobank International, Credit Suisse Group AG, DBS Bank Ltd., Emirates NBD PJSC, HSBC Holdings Plc, ING Groep NV, JPMorgan Chase & Co., Morgan Stanley, National Australia Bank Ltd., Natixis, Royal Bank of Scotland Group Plc, Standard Chartered Plc and UBS AG, according to a May 27 company statement.
Olam has $2.2 billion of loans maturing before the end of 2017, according to data compiled by Bloomberg.
--Editors: Edward Johnson, Shelley Smith
To contact the reporters on this story: Katrina Nicholas in Singapore at firstname.lastname@example.org; Joyce Koh in Singapore at email@example.com.
To contact the editor responsible for this story: Shelley Smith at firstname.lastname@example.org