Thai Union to strengthen footing with debentures

Seafood processing giant Thai Union Group is preparing to issue up to 4 billion baht in debentures with an additional greenshoe of 2 billion baht in order to strengthen its financial foundation for the long term.

Tris Rating gives Thai Union an A+ with a stable outlook and its subordinated perpetual debentures an A-.

Thai Union also retains the right to call the debentures after five years or upon other conditions in accordance with the terms and conditions of the debentures as specified in the prospectus.

The coupon is 5% annually for the first five years and will be payable quarterly.

The subordinated perpetual debentures will be offered to retail and institutional investors. The subscription period is scheduled for Nov 26-28.

Bangkok Bank, Krungthai Bank, Siam Commercial Bank and Phatra Securities have been appointed as joint lead arrangers.

“Over our more than 40-year history, we have built a strong and successful company with a global footprint and a portfolio of 14 brands around the world,” said Thai Union chief executive Thiraphong Chansiri. “Issuing these debentures will allow us to not only further strengthen our financial footing, but continue expanding our business as we pursue a path of consistent, solid growth.”

Mr Thiraphong said that while Thai Union is the world’s No.1 canned tuna producer, it also has a diverse range of products worldwide, allowing the company to effectively manage operations under varying economic conditions.