The Hindu Business Line : Tata Steel FCCB exchange offer for CARS

MUMBAI: Tata Steel on Thursday announced 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 $875-million Convertible Alternative Reference Securities (CARS) due 2012 .

The CARS have a yield to maturity of 5.15 per cent 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 (and yield to maturity) of 4.5 per cent each and will mature on November 21, 2014.

The FCCBs are convertible into fully paid-up ordinary shares of Tata Steel at Rs 605.53 per share at a fixed exchange rate of Rs 46.36 equivalent to $1 (conversion price), which is at a premium of more than 15 per cent over the closing price on November 11.

Standard Chartered Bank, ABN Amro Bank N.V., and Citigroup Global Markets Ltd are acting as dealer managers and Calyon Singapore as the co-manager for the offer. Citibank N.A. is the exchange agent. — Our Bureau

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