| Olam International, controlled by a unit of Singapore investment company Temasek Holdings, may be able to cut annual borrowing costs after a change in ownership control, according to Jefferies Group LLC. Spreads on Olam's 5.75 per cent US dollar-denominated bonds due in 2017 have narrowed 147 basis points since March 14, according to BNP Paribas SA prices.
The cost of financing Olam's about $7 billion in debt will shrink by about $100 million a year based on the spread narrowing 140 basis points, Abhijit Attavar, a Singapore-based Jefferies analyst, said. Breedens Investments Pte, a unit of Temasek, and its related parties own or control 80 per cent of Singapore-based Olam, they said in a statement on May 23 after a takeover offer closed. Breedens on March 14 had offered $2.23 each for the shares of Olam it didn't own, valuing one of the world's top three coffee and rice traders at $5.3 billion...............................................Full Article: Source
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