By Rebecca Melvin
New York, Oct. 9 - Tata Motors Ltd. priced $375 million of five-year convertible notes on Friday with a 4% coupon to yield 5.5% to maturity, and with an initial conversion premium of 7.5%, according to a news release.
Tata Motors also issued 29.9 million shares of new equity in the form of global depositary shares at $12.54 per share, for proceeds of $375 million.
The shares and the Regulation S notes, totaling $750 million, will be listed on the Luxembourg Stock Exchange.
Citigroup Global Markets Inc., Credit Suisse Securities and J.P. Morgan Securities Inc. were joint bookrunners for the offerings.
The offerings were oversubscribed, with the book being closed in less than an hour from launch, generating a demand of $1.25 billion from 40 investors.
The deal size was upsized from a base of $600 million to $750 million.
The share pricing represented a tight 1.5% discount to the closing price on Oct. 8 of Rs. 589.25.
Tata Motors intends to use proceeds for repayment of $700 million of debt incurred in connection with the acquisition of Jaguar Land Rover and for other purposes such as capital expenditure, working capital and other general corporate purposes.
Mumbai, India, based Tata Motors is India's largest car maker.
| Issuer: | Tata Motors Ltd.
|
| Issue: | Convertible notes
|
| Amount: | $375 million
|
| Concurrent offering: | 29.9 million of global depositary shares at $12.54 per share
|
| Maturity: | 2014
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities and J.P. Morgan Securities Inc.
|
| Coupon: | 4%
|
| Price: | Par, $100,000
|
| Yield: | 5.5%
|
| Conversion premium: | 7.5%
|
| Pricing date: | Oct. 9
|
| Settlement date: | Oct. 15
|
| Distribution: | Regulation S
|
| Stock symbol: | NYSE: TTM
|
| Stock reference price: | $12.54
|
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