Vedanta: Vedanta seeks up to $1.2 billion via bonds to refinance debt

Mumbai: Vedanta Resources Ltd (VRL) on Monday launched two sets of bonds to raise up to $1.25 billion split across — a 3.5-year term at 10.25%, and another with a 7-year term at 11.25%. The funds will be used to refinance the company’s outstanding 13.875% bonds maturing in 2028, according to people familiar with the matter.

The bonds are raised through its issuing entity Vedanta Resources Finance II PLC. The bonds are fixed-rate senior unsecured guaranteed notes issued under 144A/Regulation S. The company gave initial price guidance of 10.375%, but was able to close the 3.5-year bond at 10.25% and 7-year bond at 11.25%.

The company had raised $300 million at 9.99% last month.

The bonds, guaranteed by Vedanta Resources Ltd. and subsidiary guarantors TwinStar Holding and Welter Trading, are structured with a semi-annual fixed coupon.

The bond-raise is part of Vedanta’s overall strategy to manage its $4.8-billion debt obligations, which include $3 billion in bonds, $1 billion in bank loans, and an $850 million private credit facility. Last week, the company redeemed $295 million of its bonds at par, with a second redemption of its 2028 notes planned for December 20, this year contingent on securing sufficient funding, as reported by ET.

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