Dow Jones reported that TATA Steel Ltd may refinance around USD 900 million that it had raised to partly fund its acquisition of Anglo Dutch steel maker Corus in 2007.
A person familiar with the matter said that “The company is yet to decide on the modalities of the refinancing.”
TATA Steel had raised USD 875 million via a foreign currency convertible alternative reference securities offering or CARS for its USD 12 billion Corus acquisition. The person added that the CARS expires in 2012.
At the time of issuance in 2007, the TATA Group company had said that the CARS will be convertible into either qualifying securities or ordinary shares at an initial conversion price of INR 876.6225 a share.
The Indian steel maker has earlier also restructured or refinanced its borrowings for the Corus buy. In May this year, TATA Steel UK received lenders approval to reset the covenants on its GBP 3.7 billion debt.
(Sourced from http://www.steelguru.com/news/index/2009/09/19/MTEyMzgz/TATA_Steel_may_refinance_USD_900_million_for_Corus_buy.html)
Friday, September 18, 2009
TATA Steel may refinance USD 900 million for Corus buy
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