Tata Steel executes agreements to refinance and term out its international debt portfolio

To the tune of US$5.4 billion

Tata Steel announced that Tata Steel UK Holdings, a 100% indirect subsidiary of Tata Steel executed agreements for the refinancing of its bank debt through term loan and revolving credit facilities of 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 370 million, a 6 year revolving credit facility for working capital purposes of 700 million and a 7-year loan of 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 today for loan facilities of US$1.5 billion comprising of a 5 year loan of US$700 million and a 7 year loan of US$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.

Powered by Capital Market - Live News