January 24, 2017


Thai Union Group secures THB24.5 billion long-term financing for Red Lobster deal




Thai Union Group Public Company Limited, one of the world's leading seafood suppliers, has successfully completed the book building for THB12 billion (US$340.4 million) in new debentures to secure long-term financing for its investment in Red Lobster Seafood Co.


The debentures were the largest ever issued by Thai Union. The three-year, five-year, seven-year and 10-year bonds attracted strong support from institutional investors, and were oversubscribed 2.6 times. The coupon for the three-year debentures is 2.49% p.a.; the five-year debentures at 2.91% p.a.; the  7-year debentures at 3.58% p.a.; and the 10-year debentures at 3.94 p.a.


Bangkok Bank PCL, Bank of Ayudhya PCL, and Siam Commercial Bank PCL served as lead managers.


Thai Union has also secured THB13 billion (US$369 billion) in long-term loans. Bangkok Bank PCL, Bank of Ayudhya PCL, Sumitomo Mitsui Banking Corporation, Bangkok Branch were the lead arrangers, while KASIKORNBANK PCL, Mizuho Bank, Ltd., Standard Chartered Bank (Thai) PCL and Bank of China (Thai) PCL were co-arrangers.


"The robust participation of investors in our book building reflects the confidence they have in Thai Union," Thiraphong Chansiri, CEO of Thai Union Group, says. "The result, which is important in ensuring we have the necessary long-term financing for our strategic investment in Red Lobster, also indicates that the market supports our strategy for growth and expansion."


Thai Union will use the proceeds from both the bonds and the long-term loans mostly to finance the $575 million investment in Red Lobster, the world's largest seafood restaurant company. The acquisition, announced last October, is part of efforts by Thai Union to build its direct-to-consumers channel.

- Thai Union

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