Tata Chemicals completes non recourse
financing of US$300mn to retire the bridge loan taken for
the acquisition of General Chemical Industrial Products Inc
General Chemical Industrial Products Inc (GCIP), a step down
subsidiary of Tata Chemicals (TCL) has successfully completed
the underwrite funding of $300mn. This is a six year door-to-door
facility with attractive pricing linked to LIBOR + margin
grid which is based on net debt to EBIDTA ratios.
Mumbai, November 24, 2008
The facility is without recourse to Tata Chemicals. Speaking
on the occasion, PK Ghose, executive vice president and CFO,
Tata Chemicals, said, Despite the current global financial
market conditions, it was heartening to see the faith shown
by financial institutions in underwriting the funding. The
funding has been done at a very attractive pricing and this
reiterates the strong fundamentals of our organisation.
This transaction is led by Standard Chartered Bank through
a consortium of Co-mandated Lead Arrangers comprising ABN
Amro Bank, ANZ Banking Group, HSBC Bank, Calyon and State
Bank of India.
Currently the global syndication process is underway and
is expected to be completed by December 2008.
This facility is arranged to repay the $350mn bridge loan
taken by Valley Holding Inc the US subsidiary of Tata Chemicals
for the acquisition of GCIP, the balance $50mn is to be paid
from internal accruals.