Thursday, September 1, 2011

Tata Motors hired SBI to Raise $500 Million Loan From Banks

Tata Motors Ltd. (TTMT), the Indian owner of Jaguar Land Rover, hired State Bank of India to help it borrow $500 million in a term loan, according to a person familiar with the matter.

The two-part facility consists of a $200 million portion which matures in five years and a $300 million portion which matures in seven, the person said, asking not to be identified as details are private.

Lenders committing $20 million or more to the five-year loan will receive margin and fees for a so-called all-in payment of 260 basis points more than the London interbank offered rate while those contributing that amount or more to the seven-year facility will receive a rate of 280 basis points more than Libor, the person said. Tata Motors will use the proceeds for general corporate purposes, the person said.

Meetings to market the loan to other lenders will be held in Taipei on Sept. 5, Singapore on Sept. 6 and London on Sept. 21, the person said. Other meetings may also be arranged in Dubai, the person said.

State Bank of India (SBIN) expects to complete syndication in mid October and Tata Motors will likely sign the loan later that month, the person said.

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