Tata Steel, through its subsidiaries, has undertaken a restructuring of its overseas debt portfolio of $5.4 billion.
Tata Steel UK Holdings Ltd. (TSUKH), a 100 per cent indirect subsidiary of Tata Steel, on Thursday, executed agreements for refinancing of its bank debt through term loan and revolving credit facilities of 3.05 billion euro.
A statement from Tata Steel said the debt was originally incurred in relation to the acquisition of Corus Group plc in 2007. “The new financing structure consists of a five-year loan of 370 million euro, a 6-year revolving credit facility for working capital purposes of 700 million pound and a 7-year loan of 1.8 billion euro, with more favourable terms and pricing relative to the earlier debt,” the statement said.
Further, Singapore-based Tata Steel Global Holdings Pte. Ltd. (TSGH), another 100 per cent indirect subsidiary of Tata Steel, also executed agreements for loan facilities of $1.5 billion comprising 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 company said.
