The fund-raise happened 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 in 2028, people aware of the development said.
Last month, Vedanta Resources had raised $900 million by offering 10.875% which will mature in 2029. The tap issuance, structured under Regulation S, has Barclays, Citigroup, Deutsche Bank, JP Morgan, and Standard Chartered Bank as lead managers. Settlement is expected on October 25, 2024.
S&P has rated the new issuance CCC+, in line with existing notes. Like the existing bond, interest payments will be guaranteed by Vedanta Resources, Twin Star Holdings and Welter Trading. Spokespersons of Barclays, JP Morgan, and Standard Chartered Bank declined to comment while Citigroup could not be reached for a comment.
Vedanta’s $900-million bond sale in September saw strong demand, with orders reaching $1.45 billion, which was a 1.6x oversubscription. The current tap is expected to save the company 80 basis points over the prior issuance, yielding an annual interest savings of about 3% on the refinanced debt.
On the Singapore Stock Exchange, Vedanta Resources Finance II on Monday said it is planning to redeem a portion of its 13.875% bonds due in 2028, depending on securing sufficient refinancing. The tentative redemption date is November 20, 2024. Bondholders will receive 100% of the outstanding principal plus accrued interest up to, but excluding, the redemption date.If the refinancing condition is unmet, Vedanta may delay the redemption, notifying bondholders of any changes to the redemption date or bond amounts. Payments will be processed through DTC facilities, with interest ceasing upon full payment. If the refinancing condition isn’t satisfied, Vedanta will notify bondholders and related parties accordingly.