Jaguar Land Rover plans to increase an 800-million-pounds loan refinancing after strong lenders response.
The new loan will be used to refinance an existing debt and also provide money after the new deal will be increased. The deal has been negotiated with BNP Paribas, Bank of America Merrill Lynch and Standard Chartered. The bankers said that the new loan has been supported by existing banks, as well as new lenders.
JLR is of utmost importance for Tata Motors’ profits, as the British automaker accounts for more than three-quarters of its revenue. In June, JLR’s sales increased 7%, thanks to increased demand from China. The new deal of 200 million pounds, includes a 600 million pounds, five-year revolving credit at 250 bps and a 200 million pounds, three-year revolving credit at 200 bps over Libor.
In December 2011, the British automaker accepted a 710 million pounds committed revolving credit facility, which in 2012 was increased to 795 million pounds. In November 2009, JLR received a 116 million pounds borrowing base revolving credit facility, which ahs to be repaid on November 2011.
Jaguar Land Rover, owned by Tata Motors, said that Jaguar’s sales in June were up 34% to 6,574 units, with China sales more than doubling, while land Rover was up 2% to 27,165 vehicles.