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Tata Steel executes agreements to refinance $5.4 billion offshore debt

17 Oct 2014 Evaluate

Tata Steel’s 100% indirect subsidiary - Tata Steel UK Holdings (TSUKH) has executed agreements for the refinancing of its bank debt through term loan and revolving credit facilities of euro 3.05 billion. The debt was originally incurred in relation with the acquisition of Corus Group plc in 2007. The new financing structure consists of a 5-year loan of euro 370 million, a 6 year revolving credit facility for working capital purposes of 700 million pound and a 7-year loan of euro 1.8 billion, with more favourable terms and pricing relative to the earlier debt.

Further, Tata Steel Global Holdings (TSGH), another 100% indirect subsidiary of Tata Steel incorporated in Singapore has also executed agreements for loan facilities of $1.5 billion comprising of a 5 year loan of $700 million and a 7 year loan of $800 million. The proceeds of this loan will be used to repay term debts, term out working capital and fund investment needs of the Tata Steel Group outside India.

The 5 year loan and revolving credit facilities for TSUKH as well as the loan facilities for TSGH have been contracted as part of a joint $3.1 billion mandate to 18 Mandated Lead Arrangers. Simultaneously, the 7 year loan of euro 1.8 billion for TSUKH has been contracted with a set of 7 Mandated Lead Arrangers.

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