By Khushi Malhotra and Dharamraj Dhutia
MUMBAI (Reuters) -India’s Jayaswal Neco is refinancing costly high-yield debt with a lower-cost mix of term and working-capital loans, two sources said on Friday, adding the company is seeking about 22 billion rupees ($246 million) in fresh facilities.
The fresh borrowings are expected to carry interest of around 12.50%, sharply lower than the 17.50% coupon on the current high-yield bond, one of the sources said.
The term loan will likely have a tenor of about six years with a call option after roughly 20 months, the person added.
“This would include 17 billion rupees of a term loan and 5 billion rupees of working capital, and the deal is set to be completed in the first half of December,” one of the sources said.
The term loan is likely to carry a tenor of about six years, with a call option kicking in after 20 months.
The sources could not be named as they are not authorised to speak to media.
Jayaswal did not immediately reply to a Reuters email seeking comment.
A rating upgrade by a notch from India Ratings to BBB+ has helped secure cheaper funding, the sources said.
“The rating reflects Ind-Ra’s expectation of JNIL’s improved operational and financial profile in FY26 due to increased capacity utilisation and higher sales volumes,” the rating agency said.
($1 = 89.4600 Indian rupees)
(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Nivedita Bhattacharjee)
