Vedanta sets price talk for dollar-denominated two-part note offering

By Paul A. Harris

Portland, Ore., May 25 - Vedanta Resources plc set price talk for its benchmark-sized dollar-denominated offering of five- and 10-year senior notes (Ba2/BB/BB) on Wednesday, according to an informed source.

Vedanta talked a tranche of five-year notes with a 6¾% to 7% yield.

Meanwhile a tranche of 10-year notes is talked with an 8¼% to 8½% yield.

Tranche sizes, as well as the overall deal size, remain to be determined.

The deal is set to price on Thursday.

Barclays Capital, Citigroup, Credit Suisse, RBS and Scotia are leading the Rule 144A and Regulation S offering.

Proceeds will be used to fund the acquisition of Cairn India Ltd. If the acquisition does not go forward, the proceeds would be used to fund capital expenditures, debt repayment and other general corporate purposes.

Moody's Investors Service expects to rate the notes Ba3 if the company completes the acquisition.

Vedanta Resources is a London-based company that operates India's largest mining and non-ferrous metals company.

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