Olam obtains US$1b in revolving credit and loan facility

Proceeds will be applied towards refinancing debt.

The agribusiness company isn’t slacking off on its borrowing activities as it recently diversified its debt portfolio through securing a new multi-tranche facility.

According to a statement by Olam, the facility consists of two tranches, a US$850 million 364-day revolving credit facility and a US$150 million 5-year term loan.

“Proceeds from the Facility will be applied towards refinancing of existing debt and meeting working capital and general corporate funding requirements of the Company,” Olam said.

“This refinancing is a part of our proactive capital management strategy of diversifying our debt portfolio and achieving an optimum mix of tenor and overall borrowing cost,” said A. Shekhar, Olam’s executive director of finance and business development.