Anil Agarwal-led Vedanta Resources Plc. has priced an offering of bonds for the aggregate principal amount of $1 billion. The 6.375% bonds, due for maturity in 2022, will help to refinance part of its 2018 and 2019 maturities and extend its average debt maturity.
The company intends to use the net proceeds from this offering primarily to fund its offer to purchase for cash any and all of its outstanding $750 million 9.5% bonds due 2018 and $ 1.2 billion 6% bonds due 2019. The company also plans to use the proceeds to repay its other existing debt, it said in a statement.
Commenting on the deal, CEO Tom Albanese said: “This transaction is in line with our financial strategy to extend maturities, optimise the balance sheet and create value for all stakeholders. We are pleased with the strong demand these bonds received, with support from all major markets.”
Vedanta has received and accepted for purchase approximately $370.8 million of the 2018 bonds and $425 million of the 2019 bonds (excluding $227,000 of the 2018 bonds and $200,000 of the 2019 bonds that remain subject to the guaranteed delivery procedures), said the company statement.
Vedanta received strong investor interest for the tenders and these bonds, the statement said. This is the largest single-tranche G3 high-yield bond issuance from Asia ex-Japan since 2015. The bonds are being sold in a private offering to qualified institutional buyers. The offering is expected to close on January 30, 2017.
