Corporate
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Overseas Borrowings
Tata Steel raises $875 m for Corus buy
Our Bureau
Mumbai, Aug. 7 Tata Steel Ltd has raised $875 million in Foreign Currency Convertible Alternative Reference Securities (CARS) issue, including a $150-million green shoe option, for funding its $12-billion Corus Group acquisition.
The company had earlier announced that its $725-million Foreign Currency Convertible Alternative Reference Securities (CARS) issue was subscribed by over two times.
“Application will be made to list the CARS on an overseas stock exchange.
“The CARS will be convertible into either Qualifying Securities (which may be in the form of depositary receipts with restricted rights of withdrawal representing underlying ordinary shares with differential rights as to voting) or ordinary shares,” the company said.
The CARS will be convertible at an initial conversion price of Rs 876.62 per share, which is at a premium of 35 per cent to the company’s closing share price on the National Stock Exchange on August 6, 2007.
The CARS carry a one per cent coupon and the effective YTM (yield to maturity) is 5.15 per cent.
The outstanding CARS, if any, at maturity will be redeemable at a premium of 23.34 per cent of the principal amount, it said.
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