The fundraising occurred within the initial price guidance of 10.07%. The funds will be used to partially refinance $606 million of its outstanding 13.875% notes due 2028, people familiar with the development said.
Last month, Vedanta Resources had raised $900 million by offering a 10.875% stake that will mature in 2029. The tap issue, structured under Regulation S, has Barclays, citi groupDeutsche Bank, JP Morgan and Standard Chartered Bank as lead managers. An agreement is expected on October 25, 2024.
S&P rated the new issue CCC+, in line with the existing notes. Like the existing bond, interest payments will be guaranteed by Vedanta Resources, Twin Star Holdings and Welter Trading. Spokespeople for Barclays, JP Morgan and Standard Chartered Bank declined to comment, while Citigroup could not be reached for comment.
Vedanta’s $900 million bond sale in September saw strong demand, with orders reaching $1.45 billion, which was 1.6 times oversubscribed. The current tap is expected to save the company 80 basis points over the previous issuance, resulting in annual interest savings of around 3% on the refinanced debt.
On the Singapore Stock Exchange, Vedanta Resources Finance II said on Monday it plans to redeem a portion of its 13.875% notes due 2028, depending on it securing sufficient refinancing. The tentative repayment date is November 20, 2024. Bondholders will receive 100% of the outstanding principal plus interest accrued up to but excluding the repayment date. If the refinancing condition is not met, Vedanta may delay repayment, notifying bondholders of any changes. to the redemption date or to the amount of the bonds. Payments will be processed through DTC facilities and interest will cease upon full payment. If the refinancing condition is not met, Vedanta will notify the bondholders and related parties accordingly.
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