JSW Steel to provide guarantee for loan repayment on behalf of JSW Ohio
JSW Steel USA Ohio, Inc., incorporated under the laws of Ohio (JSW Ohio), a wholly owned indirect subsidiary of JSW Steel (the Company), is considering a proposal for raising long term funds of more than 30 years in the municipal bond markets in the USA.
The Jefferson County Port Authority, a port authority and a body corporate and politic organized and existing under the laws of the State of Ohio (Port Authority) will be issuing special, limited obligations bonds (the Bonds), the proceeds of which will be utilised for extending a loan (the Loan) to JSW Ohio.
The Bonds will be repaid out of proceeds from repayment of loan received from JSW Ohio and the Bondholders will have no recourse to the Port Authority.
The Company shall provide a guarantee on behalf of JSW Ohio, which will be utilised to secure the repayment of the Bonds.
The proceeds of the Loan are proposed to be utilised for the purpose of refinancing/ reimbursing, in whole or in part, the cost of (1) the modernization of an electric arc furnace (EAF), consisting of automation and upgrade of the existing EAF at the steel manufacturing facilities located in the Village of Mingo Junction, Jefferson County, Ohio and (2) the caster modernization including the installation of a Level 2 automation system to allow for the production of higher quality steel slabs at the Facility.
Source: Capital Market Live News