The company said, ?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 expects to issue its Economic Development Revenue Bonds (JSW Steel USA Ohio, Inc. Project), Series 2023 in the aggregate principal amount of $145,000,000 on or about 20 December 2023.?
?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 bonds are subject to mandatory tender for purchase on 1 December 2028 as described in the preliminary limited offering memorandum dated the date hereof (the ?offer document?) with the option to remarket the bonds, with any supplement, update or amendment thereof. In connection with the issuance and sale of the bonds, the company has agreed to provide a guarantee on behalf of JSW Ohio, which will be utilised to secure the repayment of the bonds,? JSW Steel stated in the press release.
The proceeds of the loan are proposed to be utilised for financing, in whole or in part, the cost of the acquisition, construction, equipping, and installation of a vacuum tank degasser and improvements to a continuous slab casting machine including dynamic soft reduction technology.
A part of the loans will also be used for initiatives such as caster upgrades, auxiliary systems, infrastructure improvements and certain ancillary equipment in order to provide for improvements in slab quality and slab production capabilities, including the ability to produce thicker slabs at its site located in Mingo Junction, Ohio. The proceeds will also be used for funding capitalized interest and paying certain costs of issuing the bonds.
JSW Steel, the flagship business of the diversified JSW Group, is India's leading integrated steel company.
The iron & steel giant reported a consolidated net profit of Rs 2,760 crore in Q2 FY24 as against a net loss of Rs 848 crore posted in Q2 FY23. Revenue from operations grew 6.72% year on year (YoY) to Rs 44,584 crore in the quarter ended 30 September 2023.
Shares of JSW Steel advanced 2.44% to end at Rs 839.35 on the BSE. The counter hit an all time high of Rs 853.10 in intraday today.
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