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Published on 5/12/2022 in the Prospect News Distressed Debt Daily, Prospect News Emerging Markets Daily, Prospect News High Yield Daily and Prospect News Liability Management Daily.

Vedanta accepts early tenders for $468.38 million 6 3/8% notes

By Marisa Wong

Los Angeles, May 12 – Vedanta Resources Ltd. announced the early results of its April 28 offer to purchase for cash up to $500 million of its outstanding 6 3/8% bonds due 2022 (Cusips: G9328DAM2, 92241TAK8).

As of 5 p.m. ET on May 11, the early tender deadline, holders had tendered a total of $468,375,000 of the bonds. The company has decided to accept for purchase all of the early tendered bonds, according to a Thursday press release.

Payment for the early tendered bonds is expected to be made on May 13.

Vedanta offered an early tender offer consideration of $1,000 per $1,000 principal amount of notes tendered by the early tender deadline.

Holders tendering after the early deadline will only be eligible to receive the tender offer consideration of $980 per $1,000 of notes.

The offer expires at 11:59 p.m. ET on May 25. Final settlement is slated for May 27.

Tenders may no longer be withdrawn.

The company had said it reserves the right to purchase the bonds in excess of or below the maximum acceptance amount or not to purchase any bonds.

The purpose of the tender offer is to proactively manage the company’s upcoming debt maturities and is aligned with its commitment to accelerate deleveraging and to reduce its gross debt by over about $4 billion over the next three financial years.

On April 28, Vedanta Ltd. also declared a dividend of Rs. 31.50 per equity share amounting to Rs. 117.1 billion (roughly $1.55 billion). Receipt by the company out of the dividend payment amounts to Rs. 76.76 billion (roughly $1.02 billion). The company intends to use up to Rs. 37.8 billion ($500 million) of the dividend receipt to fund the tender offer.

Barclays Bank plc (+44 20 7773 8890, attn.: liability management group, eu.lm@barclays.com; with a copy to +852 2903 2706, attn.: liability management group, tmgap@barclays.com), Citigroup Global Markets Ltd. (+852 2501 2541, debt syndicate desk, liabilitymanagement.asia@citi.com), DBS Bank Ltd. (+65 6225 6783, +65 6878 9821, attn.: fixed income origination, liabilitymanagement@dbs.com), Deutsche Bank AG, Singapore Branch (+65 6423 7959, global risk syndicate, asiasyn@list.db.com), J.P. Morgan Securities plc (+852 2800 8220, +44 20 7742 5940, 212 834-4533, attn.: Asia syndicate desk, liability_management_asia@jpmorgan.co) and Standard Chartered Bank (+44 20 7885 5739 / +852 3983 8658 / +65 6557 8286, attn.: liability management, liability_management@sc.com) are acting as dealer managers for the tender offer.

Morrow Sodali Ltd. (vedanta@investor.morrowsodali.com, https://bonds.morrowsodali.com/vedanta, +852 2319 4130, +44 20 4513 6933, 203 609-4910) is the information and tender agent.

Formerly known as Vedanta Resources plc, Vedanta is a diversified metals and mining, oil and gas and power generation company. The company’s business is principally located in India but also has operations in Zambia, Namibia, South Africa, the United Arab Emirates, Japan, South Korea and Taiwan.


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