Amira postpones $225 million notes offer in wake of stock sell-off

By Paul A. Harris

Portland, Ore., Feb. 11 – Amira Nature Foods Ltd. postponed its $225 million offering of five-year second-lien senior secured notes (B3/B-), according to an informed source.

The postponement comes in the wake of Tuesday’s 25% sell-off in the price of the company’s common shares.

The share price trailed a report calling into question recent earnings statements from the company, market sources said.

In a subsequent statement Amira acknowledged the existence of the report but asserted that it contains “false, factually inaccurate and fictional content obtained from previously released false statements, that have been repackaged and distributed with malafide intention,” by a party that had shorted Amira’s stock.

In the statement Amira said it intends “to pursue this matter legally.”

The bond deal was being led by Deutsche Bank Securities, JPMorgan, Barclays, Jefferies & Co. and KeyBanc.

Price talk had the deal coming with an 11% coupon at 97 to 98 with an all-in yield of 11½% to 11.8%. There were also covenant changes.

The proceeds had been designated to support development of the company’s international operations, to reduce short-term debt, to purchase land for its new manufacturing facility and for general corporate purposes.

The Dubai-based company exports packaged Indian specialty rice to more than 60 countries.

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