Jaguar Land Rover to raise a billion Euros
Completely owned subsidiary of Indian manufacturer Tata Motors, British car maker Jaguar Land Rover has announced to raise over a billion Euros via senior notes. This money will be used for R&D of JLR products and to refinance their existing debts.
Mr C Ramakrishnan, CFO, Tata Motors, stated, “This is a milestone in significantly strengthening the capital structure of Jaguar Land Rover and we are very pleased with the outcome.” Earlier at the start of this week, JLR announced their plans of raising cash via releasing denominated senior notes in US Dollar and Pound.
In a statement, JLR said, “Jaguar Land Rover PLC, the parent company of Jaguar Cars and Land Rover, itself wholly owned by Tata Motors, is pleased to announce the pricing of 1,000 million equivalent senior notes following a significant over-subscription by investors.”
JLR has already released approximately $500 million worth of these denominated senior notes which will be due by 2018 with an interest rate of 8.125% annually. Another set of $410 million will be due in 2018 with 7.75% interest rate per annum while a 3rd set of $410 million senior notes will be due by 2021 at 8.125% per annum.
“The proceeds from the issuance and the sale of the notes will be used to refinance existing debt and for general corporate purposes,” JLR added. As of 31st Dec 2010, JLR’s total debt is Rs 19,300 crores (£2.65 billion) while Tata Motors debt stood at Rs 34,000 crores.