Tata Steel arranges refinancing for Corus

Kolkata, May 4 (UNI) Tata Steel today announced refinancing its GBP 3,620 million acquisition bridge facility and revolving credit facility to fund its acquisition of Corus Group, completed on April two.

Company sources said the refinancing was by way of non-recourse facilities totalling GBP 3,170 million, which were being arranged by a syndicate, led by citigroup, ABN AMRO and Standard Chartered Bank.

This refinancing provides significant benefits and flexibility over the term of the financing to the group.

The refinancing facility comprises a five year GBP 1670 million amortising loan, to be syndicated by the joint book runners to relationship Banks of Tata Steel and Corus and a seven year minimally amortising term loan of GBP 1500 million, to be syndicated to institutional investors and Banks in the US, Europe and Asia.

The balance amount of the acquisition bridge was being repaid by an additional equity contribution by Tata Steel/Tata Steel Asia which had been previously disclosed on April 17 this year.

Subsequent to the conclusion of the discussions on the commercial terms of the financing, the process to discuss the security package for the transaction will commence with the Trustees of the UK Pension Fund in continuation of the dialogue with the Trustees from October, 2006.

Concurrently, Corus will engage in the consultative process wit the Corus Netherlands Works Council to seek their advice on the financing.

UNI