Tata Chemicals has completed a $300 million financing deal for its US acquisition, General Chemical Industrial Products Inc (GCIP), now a subsidiary of Tata Chemicals, to repay a bridge loan Tata Chemicals had taken for its American acquisition.
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. The facility is without recourse to Tata Chemicals, Tata Chemicals said in a release.
''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,'' said PK Ghose, executive vice president and CFO, Tata Chemicals.
The transaction was led by Standard Chartered Bank through a consortium of Co-mandated lead arrangers comprising ABN Amro Bank, ANZ Banking Group, HSBC Bank, Calyon and the State Bank of India.
The banks are in the process of syndicating the loan and the deal is expected to be completed by December 2008.
Tat Chemicals had taken a bridge loan from Valley Holding Inc of the US for the acquisition of GCIP, the balance $50 million is to be paid from internal accruals, the release said.