Tata Tea to save Rs 23 cr on debt recast of Tetley
The Financial Express — March 10, 2005

Tea major Tata Tea Ltd will save an additional amount of Rs 23 crore on account of interest cost following the successful conclusion of second time debt restructuring for their holding company, Tetley Group Ltd (TGL). The entire residual debt, which they had in Tata Tea (GB) Ltd, a special purpose vehicle (SPV) holding 100% equity of the Tetley Group Ltd, UK, has been paid off and replaced by a fresh loan with lesser rate of interest.

Tata Tea managing director PT Siganporia told reporters here that the first debt restructuring arrangement took place in February 2003 and the amount that remained outstanding up to February 5, this year, has gone for a fresh restructuring. “The leveraged debt structure based on which the acquisition of TGL was concluded in March 2000, has been successfully and progressively whittled down from a high debt equity ratio of 3:1 to 1:8 in february 2003 and is now down further to 1:6,” Mr Siganporia said.

He added that initially the debt was aggregated to Rs 1,527 crore while weighted average rate of interest was 2.95 % plus prevailing interest as per London Inter Bank Offered Rate (Libor).