On September 29, Indian steel goliath Tata Steel announced that it has executed agreements for the refinancing of its European operations.
According to a company statement, Tata Steel UK Holdings, a 100 percent indirect subsidiary of Tata Steel, signed a senior facility agreement with a syndicate of 13 banks for a £3.53 billion ($5.6 billion) term loan and revolving credit facility which is intended to replace in full the current term loan and revolving credit facilities entered into at the time of the acquisition of Corus Group plc in 2007.
The loan has been acquired in two parts; a five-year loan of around £1.8 billion and a seven-year loan of £1 billion. The revolving credit facilities for working capital purposes have been increased to £690 million and will have a tenor of five years.