Steel major JSW Steel Ltd on Monday in its statement to the BSE said, the US-based Periama Holdings LLC, a wholly-owned indirect subsidiary of JSW Steel Ltd, plans to issue additional dollar-denominated senior notes to raise funds in the US, subject to necessary regulatory approvals. The quantum of the additional notes to be issued was however not specified by the company.
The company’s arm in October this year had issued $500 million by allotting fixed rate senior unsecured notes. “The proceeds of the issue will be used for the repayment of the part of the existing indebtedness owed to the company including interest thereon and for general corporate purposes,” the company said.
As part of the fundraising plans, the price of these additional notes including aggregate principal amount, the offer price and the interest rate will be determined by book building process.
JSW Steel and its arm will start discussions with potential investors from today by issuing a preliminary offering circular.
Rating agency Moody's Investor Service had said JSW Steel's credit profile will remain largely unaffected by the issuance of additional notes following the existing $500 million unsecured notes issued in October. It said the tap offering would constitute a further issuance and would be fungible with and consolidated to form a single series with $500 million of senior unsecured 5.95% notes due in April 2026.
JSW Steel’s strong position is also a result of its good product and end-market diversification, given its increasing focus on value-added products and retail sales. "JSW should be able to restore its metrics to appropriate levels by financial year 2021-22 (Apr-Mar), considering its relatively strong business profile, brand strength and technological capabilities, which will help it sustain above-average profitability," Moody’s said.
JSW Steel Ltd shares on Monday were almost flat at 359.85 on the Bombay Stock Exchange at around 2.00 pm