February 22, 2012: JSW Steel plans to raise up to $275 million through overseas borrowings mainly to buy back its outstanding foreign currency convertible bonds.
The fund raising plan has been approved by the Finance Committee, a duly authorised sub-committee of the company board, at its meeting held yesterday, JSW said in a filing to the BSE, adding that it will be done through external commercial borrowing (ECB) route.
"The company has entered into an indicative, non-binding term sheet with an arranger for the ECB. The term of the ECB is 5 years plus 1 day from the date of drawdown," JSW further said, without giving the details.
The fund raising exercise of up to $275 million includes a green-shoe option of USD 75 million, the company said. This means that JSW will be borrowing $200 million through ECB and can increase it further by $75 million, if the response is higher than expected.
The raised money will be utilised for buyback of outstanding foreign currency convertible bonds (FCCBs), on redemption of outstanding FCCBs and capital expenditure, the company said.
Source: The Economic Times