TATA Steel announced through BSE that the committee of the board has approved an exchange offer of new foreign currency convertible bonds for any or all of the existing USD 875 million Convertible Alternative Reference Securities due 2012.
The CARS have a yield to maturity of 5.15% per annum and are convertible into qualifying securities or ordinary shares of the issuer.
The company said it is making the exchange offer to lengthen its debt maturity profile, reduce the cost to the issuer and potentially reduce future repayment obligations.
The exchange bonds have a coupon of 4.5% each and will mature on November 21st 2014.
Standard Chartered Bank, ABN Amro Bank NV and Citigroup Global Markets Ltd are acting as dealer managers and Calyon Singapore as the co manager for the offer. Citibank NA is the exchange agent.
(Sourced from Business Line)
