General Chemical Industrial Products Inc (GCIP), a step down subsidiary of Tata Chemicals has successfully completed the underwrite funding of $300mn. This is a six year door-to-door facility with attractive pricing linked to LIBOR + margin grid which is based on net debt to EBIDTA ratios.
The facility is without recourse to Tata Chemicals. Speaking on the occasion, PK Ghose, executive vice president and CFO, Tata Chemicals, said, “Despite the current global financial market conditions, it was heartening to see the faith shown by financial institutions in underwriting the funding. The funding has been done at a very attractive pricing and this reiterates the strong fundamentals of our organisation.”
This transaction is led by Standard Chartered Bank through a consortium of Co-mandated Lead Arrangers comprising ABN Amro Bank, ANZ Banking Group, HSBC Bank, Calyon and State Bank of India.
Currently the global syndication process is underway and is expected to be completed by December 2008.
This facility is arranged to repay the $350mn bridge loan taken by Valley Holding Inc the US subsidiary of Tata Chemicals for the acquisition of GCIP, the balance $50mn is to be paid from internal accruals.