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The proceeds from the notes issuance will be used by TMLH for refinancing the outstanding syndicated loan facility of GBP 225 million, for meeting the issue expenses and for other general corporate purposes
New Delhi: Homegrown auto major Tata Motors on Thursday said its wholly-owned arm, TML Holdings Pte Ltd (TMLH) has raised $425 million (over Rs 3,100 crore) in unsecured notes, the proceeds of which will be used for refinancing loan and for other general corporate purposes.
TMLH is the holding company of JLR Automotive Plc (JLR), Tata Daewoo, Korea and a few other international operations of Tata Motors.
On June 2, 2021 TMLH successfully priced a $425 million 5NC2.5 year (a 5-year fixed-income security, non-callable for the first 2.5 years) fixed rate senior unsecured notes due in 2026, Tata Motors said in a regulatory filing. The notes will be issued at a coupon rate of 4.35% on June 9, 2021, with a maturity date of June 9, 2026, it added.
“The proceeds from the notes issuance will be used by TMLH for refinancing the outstanding syndicated loan facility of GBP 225 million, for meeting the issue expenses and for other general corporate purposes,” the filing added.
The “transaction received significant interest from investors across Asia and Europe with the final order book in excess of $2.2 billion (representing an oversubscription of over 5.1 times)” from 138 accounts and 84% of the final allocation to high quality, blue-chip real money funds and asset managers, the company said.