Vedanta gains consent for bonds at Jan. 4 meeting

By Mary Katherine Stinson

Lexington, Ky., Jan. 4 – Vedanta Resources Ltd. reported the success of its consent solicitation relating to four series of bonds, according to a notice.

At the Jan. 4 meeting, the extraordinary resolutions for the bonds were passed and the proposals approved without any amendment. The company also announced that the eligibility conditions were satisfied.

Each of the amendment documents for the 2024 bonds and 2025 bonds and the supplemental trust deed for the 2026 bonds will be effective beginning on the settlement date, which is expected to be Jan. 11.

For both series of 2024 bonds and the 2025 bonds, the company offered an early consent fee per $1,000 principal amount of $20, while that fee is $7.50 for the 2026 bonds. The early fee will be paid only to holders who delivered their consents by 5 p.m. ET on Dec. 27.

There were two consent solicitations. One applied to the 2024 and 2025 bonds. The other applied to the 2026 bonds.

After Dec. 27, the consent fee dropped to $2.50 per $1,000 principal amount for each series.

The record date was Dec. 26.

The consent fee and the ineligible bondholder payment will be made on or around Jan. 11.

The upfront principal redemption in respect of the 2024 bonds and 2025 bonds will be made on the upfront redemption date, which is expected to be as soon as possible following the settlement date and no later than Feb. 7.

As previously reported, as of the voting deadline of 5 p.m. ET on Jan. 2, the company had received instructions from:

• Eligible holders of $761.22 million of the $1 billion 6 1/8% bonds due 2024 (Cusips: G9328DAP5, 92241TAM4) issued by Vedanta, of which $744.3 million, or 97.78%, of the instructions received were in favor of the extraordinary resolution;

• Eligible holders of $946,281,000 of the $1 billion 13 7/8% bonds due 2024 (Cusips: V9667MAA0, 92243XAD3) issued by Vedanta Resources Finance II plc and guaranteed by Vedanta and its subsidiary guarantors, of which $933,872,000, or 98.69%, of the instructions received were in favor of the extraordinary resolution;

• Eligible holders of $1,146,511,000 of the $1.2 billion 8.95% bonds due 2025 (Cusips: G9T27HAD6, 92243XAE1) issued by Vedanta Resources Finance II and guaranteed by Vedanta and its subsidiary guarantors, of which $1,142,661,000, or 99.66%, of the instructions received were in favor of the extraordinary resolution; and

• Eligible holders of $486,484,000 of the $600 million 9¼% bonds due 2026 (Cusips: G9T27HAA2, 92243XAA9) issued by Vedanta Resources Finance II and guaranteed by Vedanta, of which $482,194,000, or 99.12%, of the instructions received were in favor of the extraordinary resolution.

The company was asking holders of each series to approve by extraordinary resolution some amendments and waivers to the bonds.

Vedanta was seeking to extend its debt maturity profile, thereby improving its capital structure and financial position; to demand covenants and seek certain waivers to allow the group to accommodate the existing debt, including private credit facilities, with a higher average cost of debt; to improve the credit packet of the bonds to incentivize bondholders to consent to the amendments; and certain covenant amendments and waivers to account for Vedanta Ltd.’s plan to demerge its business units into independent companies.

Specifically, Vedanta plans to demerge its business into Vedanta Aluminium Metal Ltd., Malco Energy Ltd., Talwandi Sabo Power Ltd., Vedanta Iron and Steel Ltd. and Vedanta Base Metals Ltd.

If the consent conditions had not been met by Jan. 29, the consent solicitations would have been terminated.

J.P. Morgan Securities plc (+44 20 7742 5940, +852 2800 8220, 212 834-4533 or liability_management_asia@jpmorgan.com) and Standard Chartered Bank (+44 20 7885 5739, +852 3983 8658, +65 6557 8286 or liability_management@sc.com) are the solicitation agents.

Morrow Sodali Ltd. (+44 20 4513 6933, +852 2319 4130, 203 658-9457 or vedanta@investor.morrowsodali.com) is the information and tabulation agent.

Vedanta is a London-based diversified global natural resources company with operations in India, Zambia, Namibia and South Africa.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.