News: Tata Steel agrees refinancing of debt in Europe

As Corus sites in Rotherham start to be rebranded as Tata Steel, the owner Tata Steel UK Holdings, a 100% indirect subsidiary of Tata Steel Limited, has signed agreements for the refinancing of its debt in Europe.

The agreements are with a syndicate of 13 banks for a £3.53 billion loan and revolving credit facility which is intended to replace the current facilities entered into at the time of the acquisition of Corus in 2007.

The new facilities have been designed to achieve certain key financing and business objectives for the company and the new financing structure includes a five year loan of around £1.8 billion and a seven year loan of £1 billion. The revolving credit facilities for working capital have been increased to £690m.

In the last 18 months, Tata Steel Group has repaid significant debt equivalent to approximately £900m.

Kirby Adams, Tata Steel Europe MD & CEO, said: "Lenders to Tata Steel showed confidence by supporting the company's plans to weather the financial crisis.

"In the week that we have rebranded our European operations as Tata Steel, this refinancing agreement is an important sign of our banks' sustained confidence in our plans for the future.

"As I prepare to hand over the reins of Tata Steel Europe to Karl-Ulrich Köhler, it is very satisfying that another key strategic objective of the company – the securing of a sound and more favourable financing structure for the future – is being achieved."

Tata Steel Europe website

Images: tatasteeleurope.com