Tata Steel Extends Deadline for Corus Loan Terms Finalisation

Tata Steel has granted an additional week to a banking syndicate led by Citigroup, StanChart, and the Royal Bank of Scotland to finalise repayment terms for the USD 12-billion loan arranged for the acquisition of the Anglo-Dutch steel maker Corus. The initial deadline was set for May 22, but the banks requested a one-week extension to address internal processes. This development follows Tata Steel's meeting with the banking syndicate on May 12, where lenders expressed strong support for the covenant reset proposal.

Key Takeaways:

• Tata Steel has extended the deadline for the banking syndicate to finalise repayment terms for the USD 12-billion loan to acquire Corus until May 29.
• The initial deadline was set for May 22, but the banks requested a one-week extension due to internal processes.
• Tata Steel had meetings with the banking syndicate on May 12 and received strong support for the covenant reset proposal from lenders with significant interest in the debt.
• As part of the restructuring, Tata Steel UK will prepay debt of over 200 million pounds to continue its objective of making its European operations debt-free.
• Tata Steel has discussed the current environment and the potential future impact of covenant requirements under the company's debt package.
• The banking syndicate comprises Citigroup, StanChart, and the Royal Bank of Scotland.

Statistics:

• USD 12 billion: the value of the loan arranged for the acquisition of Corus.
• 200 million pounds: the amount of debt that Tata Steel UK will prepay as part of the restructuring.
• May 12: the date of Tata Steel's meeting with the banking syndicate.
• May 22: the initial deadline for the banking syndicate to finalise repayment terms.
• May 29: the new deadline for the banking syndicate to finalise repayment terms.

Sources:

• PTI (Press Trust of India), Tata Steel Provides Extension to Banks to Finalise Corus Loan Terms.