Corus Acquisition Financing
Tata Steel is pleased to announce the refinancing of its GBP 3,620 million acquisition bridge facility and revolving credit facility which had been provided by Credit Suisse, ABN AMRO and Deutsche Bank to fund its acquisition of Corus Group plc that was completed on April 2, 2007.
The refinancing is by way of non recourse Facilities totaling GBP 3,170 million (the "Refinancing Facilities") which are being Arranged by a syndicate led by Citigroup, ABN AMRO and Standard Chartered Bank. This refinancing provides significant benefits and flexibility over the term of the financing to the group.
The Refinancing Facility comprises a five year GBP 1670 million amortizing loan which will be syndicated by the joint book runners to relationship banks of Tata Steel and Corus and a seven year minimally amortizing term loan of GBP 1500 million that will be syndicated to institutional investors and banks in the US, Europe and Asia. The balance amount of the acquisition bridge is being repaid by an additional equity contribution by Tata Steel / Tata Steel Asia which had been previously disclosed on April 17, 2007.
Subsequent to the conclusion of the discussions on the commercial terms of the financing, the process to discuss the security package for the above transaction will commence with the Trustees of the UK Pension Funds in continuation of the dialogue with the Trustees from October 2006. Concurrently, Corus will engage in the consultative process with the Corus Netherlands Works Council to seek their advice on the above financing.
Tata Steel is one of India's largest companies and is amongst the world's lowest cost steel producers and most profitable steel companies. Corus Group plc is Europe's second largest steel producer and the combined entity is the fifth largest steel producer in the world with an installed capacity of 28 million tons p.a.
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