Tata Motors said on Thursday that it planned to raise $250-500 million through overseas loans to refinance a buy-back of bonds issued by the company in 2014. Tata Motors had issued senior notes worth USD 500 million on October 30, 2014 and due in 2020.
Earlier this month, Tata Motors invited holders of the senior notes to sell their bonds to the company for a cash consideration.
In a BSE filing, Tata Motors informed that the company plans to raise USD 250-500 million through external commercial borrowings (ECB) to refinance a part of the principal amount.
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The company had said that the purchase price would be 102.5 per cent of the principal amount of the notes, being USD 1,025 for each USD 1,000 of notes. It will accept up to USD 250 million aggregate principal amount of notes.
“The company is undertaking the tender offer as part of its strategy to manage the maturity profile of its existing debt obligations. Notes purchased by the company pursuant to the tender offer will be cancelled by the company,” it had said. PTI MSS MJH SBT SBT 06072116