EM-focused Vedanta issues call for $378.9 million 6% bonds due 2019

By Susanna Moon

Chicago, April 4 – Vedanta Resources plc said it exercised the call option on its remaining 6% bonds due 2019.

The notes will be redeemed on May 4 at par plus the premium and accrued interest to the redemption date, according to a redemption notice.

Deutsche Bank Trust Co. Americas is the paying agent.

The redemption will allow the company to reduce its near-term gross debt by $379 million principal amount, “in line with its stated strategy to deleverage and extend its average debt maturity,” according to a company announcement.

“I am pleased with this proactive bond redemption, which is driven by our strategy to reduce debt and optimize the balance sheet of the group,” Tom Albanese, CEO of Vedanta, said in the press release.

“The optimization of balance sheet along with the ramp-ups at our operations will create value for all stakeholders.”

The company said on Jan. 24 that it received tenders for $370,868,000 of its 9½% bonds due 2018 in the offer that ended Jan. 24, with $227,000 of the 2018 bonds tendered under guaranteed delivery procedures.

The company also took in tenders for $425,028,000 of its 6% bonds due 2019 in the recent offer for any and all of its $750 million of 2018 bonds and $1.2 billion of 2019 bonds.

The purchase price for each $1,000 principal amount was $1,081.25 for the 2018 bonds and $1,025.00 for the 2019 bonds.

After the tenders, the outstanding amounts were $378,905,000 of the 2018 bonds and $774,772,000 of the 2019 bonds.

Vedanta Resources is a London-listed natural resources company that produces aluminum, copper, zinc, lead, silver, iron ore, oil, gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka.

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