Mumbai: Tata Steel has confirmed that it has priced the issue of Foreign Currency Convertible Alternative Reference Securities (“Cars”) aggregating $725-million (Rs2900 crore), which was oversubscribed by more than two times.
There is also a green shoe option of $150 million which has not yet been exercised, the company said through an official announcement on 7August.
An application will be made to list the ‘Cars’ on an overseas stock-exchange. Tehse would be convertible into either qualifying securities which may be in the form of depositary receipts with restricted rights of withdrawal representing underlying ordinary shares with differential rights as to voting, or ordinary shares.
The Cars will be convertible at an initial conversion price of Rs 876.6225 per share, which is at a premium of 35% to the company’s closing share price on the National Stock Exchange.
Cars carry a 1% coupon and the effective YTM is 5.15%. 0utstanding Cars, if any, at maturity will be redeemable at a premium of 23.3419% of the principal amount.
Citigroup acted as the sole global coordinator and book runner to the offering with ABN AMRO Rothschild and Standard Chartered Bank being the joint book runners.