Page 226 - Tata_Chemicals_yearly-reports-2017-18

The senior debt owed by Tata Chemicals Europe Limited comprising a revolving credit facility was refinanced in March,
2018. A maximum of £ 20 million can be drawn down under the facility, of which ` 83.05 crore (2017: ` 161.81 crore)
(2018: £ 9 million and 2017: £ 20 million) had been drawn down as at 31 March, 2018. Interest on this facility is payable at LIBOR
plus 1.15% per annum (2017: 1.99% per annum).
The debt facilities are secured by fixed and floating charges over the assets of the European sub-group. Both the above loans are
repayable in full in March 2023.
(ii) Secured term loans owed by Cheshire Salt Holdings Limited (‘CSHL’) Group:
As part of the senior debt refinancing by the TCEHL group in March 2018, a separate term loan was taken out by CSHL and its
subsidiaries, amounting to ` 461.39 crore (2017: ` Nil) (£ 50 million). Interest is calculated at LIBOR plus 1.35% per annum under the
terms of the loan.
The senior debt owed by CSHL also comprises a revolving credit facility of maximum £5 million, unutilised as at 31 March, 2018.
Interest on this facility is payable at LIBOR plus 1.35% per annum.
The debt facilities are secured by fixed and floating charges over the assets of the sub-group. Both the above loans are repayable
in full by March 2023.
(iii) Secured term loans owed by Tata Chemicals North America (‘TCNA’) Group:
Secured term loans of TCNA comprise of a USD 315 million term loan (‘Term loan’) and a USD 25 million revolving line of credit
(‘Revolver’).
The term loans are secured by a first-priority interest in the TCNA’s 75% interest in TCSAPH, the TCNA’s assets, and equity
interest in foreign subsidiaries. As at 31 March, 2018, the debt outstanding under this agreement was ` 1,468.39 crore (2017:
` 1,593.81 crore) (2018: USD 225.30 million and 2017: USD 245.77 million). Out of the same the amount repayable within one year
` Nil (2017: ` 67.89 crore), has been disclosed in note 19 within the heading current maturity of long term debt under other
financial liabilities (current). The Term loan and Revolver mature on 9 August, 2020 and 9 August, 2018 respectively.
The borrowing under this facility bears interest at either LIBOR plus applicable margin or an alternate base rate based upon the
greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1% and (c)
the Adjusted LIBOR for a one month Interest Period on such day plus 1%. The applicable margin on the Term loan and Revolver is
2.75% per annum on LIBOR borrowings and 1.75% per annum on alternate base rate loans.
(iv) Secured term loans owed by Metahelix Life Sciences Limited (‘Metahelix’):
Term loan is secured by first and exclusive charge on plant and equipment of Metahelix purchased out of the bank’s term loan.
The balance outstanding as at 31 March, 2018 is ` 0.61 crore (2017: ` 1.83 crore) (of which ` 0.61 crore (2017: ` 1.22 crore) has
been disclosed in note 19 within the heading current maturity of non-current borrowings under other financial liabilities (current))
which is repayable in balance 6 monthly installments. Rate of interest on this loan is 10.50% per annum.
The other term loan is secured by a first charge on entire movable fixed assets and agricultural property funded by the bank. The
balance outstanding as at 31 March, 2018 is ` 1.50 crore (2017: ` 2.00 crore) (of which ` 0.50 crore (2017: ` 0.50 crore) has been
disclosed in note 19 within the heading current maturity of non-current borrowings under other financial liabilities (current))
repayable in 12 equated quarterly installments of ` 0.13 crore. The rate of interest on this loan is 7.50% per annum.
(b) Debt owed by Metahelix:
Term loan from Biotechnology Industry Partnership Project is secured by hypothecation of all equipment, apparatus machineries,
machineries spares, tools and other accessories, goods and/or the other movable property of Metahelix, present and future to a value
equivalent to the amount of loan and interest thereon and the royalty payable on grant-in-aid till the full and final settlement of all dues.
Term loan is repayable along with interest in 10 equal half yearly installments from December 2015 and June 2017. The balance payable
as on 31 March, 2018 is ` 0.97 crore (2017: ` 0.80 crore) of which ` 0.25 crore (2017: ` 0.10 crore) has been disclosed in note 19 within the
heading current maturity of long term debt under other financial liabilities (current). Rate of interest on this loan is 2% per annum.
(c) Unsecured redeemable Non-convertible debentures having face value of ` 10 lakhs each are redeemable at par on 2 July, 2019 and bears
interest rate of 10% per annum.
(d) (i) The External Commercial Borrowings (‘ECB’) are due for repayments on 21 October, 2019 ` 413.60 crore (2017: ` 411.54 crore) (USD
63.46 million) and bear interest of LIBOR plus spread of 1.95%, payable semiannually. Current portion due for repayment within
one year is ` 412.36 crore (2017: ` 410.31 crore (USD 63.27 million)) and bears interest of LIBOR plus spread of 1.95% (2017: LIBOR
plus spread of 1.95%), payable semiannually. This has been disclosed in note 19 within the heading current maturity of long term
debt under other financial liabilities (current).
(ii) Debt owed by Homefield Pvt UK Limited:
Term Loan USD 45 Million: The amounts outstanding were ` 293.29 crore (USD 45 million) (2017: ` 289.52 crore(USD 45 million)).
The loan is repayable in full in March 2020. Interest on this loan is payable based on USD LIBOR plus a margin of 1.50% per annum.
(iii) Term Loan USD 28.50 Million: The amounts outstanding were ` 185.75 crore (USD 28.50 million) for the year ended 31 March, 2018
(2017: ` 181.57 crore, USD 28 million). This loan has been refinanced in March 2018 and is now repayable in full in March 2023.
Interest on this loan is payable based on USD LIBOR plus a margin of 1.15% per annum.
224 Annual Report 2017-18