Tata Motors' subsidiary issues senior notes with 4.25% interest rate

TML Holdings Pte Ltd, the wholly-owned subsidiary of Tata Motors, has issued and allotted Singapore dollars 350 million of senior notes due 2018, said the media reports.

Senior notes refer to debt that takes priority over other unsecured or 'junior' debt owed by the issuer. In the event the issuer goes bankrupt, senior debt theoretically must be repaid before other creditors receive any payment.

The net proceeds from the issue of notes, which carry an interest rate of 4.25 per cent, will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes, Tata Motors told media.

Read more about: tata motors
Story first published: Monday, May 20, 2013, 13:31 [IST]
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