Slaughter and May Advise Tata Steel on Bank Debt Refinancing

Slaughter and May Advise Tata Steel on Bank Debt Refinancing 2 – Slaughter and May advised Tata Steel UK Holdings Ltd (‘TSUKH’) and Tata Steel Global Holdings Pte Ltd (‘TSGH’) – each wholly owned subsidiaries of the India based Tata Steel Limited – on the refinancing of existing bank debt through EUR 3.05 billion and US$1.5 billion of new term loan and revolving credit facilities.

The existing TSUKH debt was originally incurred by the international steel manufacturer in 2007 in relation to its acquisition of British steel business, Corus Group. The refinancing, which signed on 16 October 2014 and closed on 28 October 2014, involves 18 Mandated Lead Arrangers and comprises 5-year and 7-year term loans of EUR 370 million and EUR 1.8 billion respectively, together with a 6-year revolving credit facility of £700 million.

The overall financing structure and consolidated leverage level of TSUKH will remain the same while benefitting from more favourable and more flexible terms with lower overall pricing. The new TSGH facility, which was also signed on 16 October 2014, will be used to repay existing term debts, term out working capital debt and fund the investment needs of the Tata Steel Group outside of India. These facilities form part of the restructuring and refinancing of the entire international debt portfolio and de-risking of the capital structure of the Tata Steel Group.
Slaughter and May worked alongside De Brauw Blackstone Westbroek, who advised on matters relating to Dutch law.

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