Tata Steel accepts $493 million 1% convertibles in exchange offer

New York, Nov. 1i9 - Tata Steel Ltd. said it accepted a total of $493 million of its 1% Convertible Alternative Reference Securities due 2012 to exchange for new convertible bonds due 2014.

Of the total, $473.5 million were accepted in the early offer and $19.5 million in the late offer.

Tata Steel will issue $546.935 million of new bonds, $525.585 million in the early offer and $21.35 million in the late offer.

Following the exchange, $382 million of the 1% convertibles will remain outstanding.

Tata Steel also said it received the needed approval from the Reserve Bank of India.

Settlement is scheduled for Nov. 20.

Tata Steel announced on Nov. 12 an offer for holders of the $875 million of 1% convertibles to exchange them for new bonds.

Through the exchange, Tata Steel is looking to lengthen its debt maturity profile and potentially reduce future repayment obligations.

The new 4.5% convertible bonds will be due on Nov. 21, 2014 and have a conversion premium of 15% and an initial conversion price of Rs. 605.5325 per share. The company is looking to issue at least $350 million of the exchange bonds.

The early deadline was 9 p.m. ET on Nov. 11. The offer ended at 10:59 a.m. ET on Nov. 16.

Standard Chartered Bank (852 3983 8653), ABN Amro Bank NV, Hong Kong Branch (852 2700 5529),and Citigroup Global Markets Ltd. (852 2501 2551 or 852 2501 2699) are the dealer managers.

Calyon Singapore is the co-manager, and Citibank, NA, London Branch is the exchange agent.

Tata Steel is a Mumbai, India-based steel producer and part of the Tata Group of companies.

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