Thai Union Group Secures THB 24.5 Billion Long-Term Financing For Red Lobster Deal
Caption (Left to right) : Mr. Nitiphong Tejavanija, Head of Local Corporates, Commercial Banking at Standard Chartered Bank (Thai) PCL, Mr. Suwat Techawatanawana, Executive Vice President at KASIKORNBANK PCL, Ms. Pimolpa Suntichok, Head of Multi-Corporate Segment at Siam Commercial Bank PCL, Mr. Narin Opamuratawongse, Executive Vice President, Merchant Banking Division at Bangkok Bank PCL, Mr. Thiraphong Chansiri, CEO of Thai Union Group PCL, Mr. Pichai Dusdeekulchai, General Manager, Head of Non - Japanese Corporate at Sumitomo Mitsui Banking Corporation, Bangkok Branch, Mr. Somchai Thusanagraivuth, General Manager at Bank of China (Thai) PCL, Mr. Suratun Kongton, Head of Corporate and Investment Banking Group at Bank of Ayudhya PCL and Mr. Visut Kittisamuth, Deputy General Manager at Mizuho Bank, Ltd.
23 January 2017, Bangkok – Thai Union Group Public Company Limited (TU), one of the world’s leading seafood suppliers, has successfully completed the book building for THB 12,000 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 3-year, 5-year, 7-year and 10-year bonds attracted strong support from institutional investors, and were oversubscribed 2.6 times. The coupon for the 3-year debentures is 2.49% p.a., for 5-year debentures is 2.91% p.a., for 7-year debentures is 3.58% p.a., and 3.94% p.a. for the 10-year debentures.
Bangkok Bank PCL, Bank of Ayudhya PCL, and Siam Commercial Bank PCL were Lead Managers.
Thai Union has also secured THB 12,500 million 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,” said Thiraphong Chansiri, CEO of Thai Union Group. “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.