11th Nov 2009 16:20
Tata Steel launches exchange offer for CARSTM
Mumbai, November 11, 2009 -The Board of Tata Steel Limited (the "Company") had authorized the Committee of the Board to consider and approve an exchange offer of new foreign currency convertible bonds for any or all of the existing US$875,000,000 Convertible Alternative Reference Securities due 2012 (the "CARS™"). The CARSTM have a yield to maturity of 5.15% p.a. and are convertible into Qualifying Securities or ordinary shares of the Issuer. The Committee has approved on 11th November 2009 the launch of such an offer.
The Company is inviting holders of the CARS™ ("Holders") to offer to exchange any or all of their CARS™ for new convertible bonds due 2014 (the "Exchange Bonds") at the applicable Exchange Ratio (the "Exchange Offer"), subject to and in accordance with the terms of the offering memorandum dated as of today's date (the "Offering Memorandum").
The Company is making the Exchange Offer with the objectives of (i) lengthening its debt maturity profile; (ii) reducing the cost to the Issuer; and (iii) potentially reducing future repayment obligations.
The Exchange Bonds have a coupon (and yield to maturity) of 4.5% each and will mature on 21 November 2014. They are convertible into fully paid up ordinary shares of the Company at INR 605.5325 per share at a fixed exchange rate of INR46.36 = US$1.00 (the "Conversion Price") which is 15% in excess of the closing share price of the Company on 11th November 2009.
Standard Chartered Bank, ABN AMRO Bank N.V., Hong Kong Branch and Citigroup Global Markets Limited are acting as the Dealer Managers and Calyon Singapore as the Co-Manager for the Exchange Offer. Citibank, N.A., London Branch is the Exchange Agent.
ContactTata Steel Limited
For investor enquiries contact:
Mr. Sandip Biswas Tel : + 91 22 6665 7328 / 7298 e-mail : [email protected]Mr. Praveen Sood Tel : + 91 22 6665 7306 e-mail : [email protected]
For media enquiries contact:
Mr. Sanjay Choudhry Tel : + 91 657 243 1142 e-mail: [email protected]
Mr. Bob Jones Tel : + 44 20 7717 4532 e-mail: [email protected]
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