By Kenneth Lim
Boston, March 3 - Vedanta Resources plc priced an upsized $805 million of seven-year convertible bonds near the cheap end of talk at par with a coupon of 4% with an initial conversion premium of 37.5%.
Price talk was for a coupon of 3.5% to 4% and an initial conversion premium of 35% to 40%.
The notes were issued at par through subsidiary Vedanta Resources Jersey II Ltd. but are guaranteed by the parent company.
The size of the deal was originally $775 million with an over-allotment option of an additional $75 million. The greenshoe is now $78 million.
J.P. Morgan Cazenove and Morgan Stanley are the global coordinators of the Regulation S offering, with Goldman Sachs and UBS Investment Bank as joint bookrunners.
The notes are callable after the first three years, subject to a hurdle at 130% of the conversion price, and may be put in years three and five.
There is a change-of-control put.
Proceeds will be used to refinance existing debt and for general corporate purposes.
Vedanta is a London-based mining company with operations in India, Zambia and Australia.
| Issuer: | Vedanta Resources Jersey II Ltd.
|
| Issue: | Convertible bonds into Vedanta Resources plc common stock
|
| Amount: | $805 million, increased from $775 million
|
| Greenshoe: | $78 million, increased from $75 million
|
| Maturity: | March 30, 2017
|
| Global coordinators: | J.P. Morgan Cazenove, Morgan Stanley
|
| Joint bookrunners: | Goldman Sachs, UBS Investment Bank
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 37.5%
|
| Conversion price: | $51.9251
|
| Conversion ratio: | 19.2585
|
| Dividend protection: | Yes
|
| Takeover protection: | Change-of-control put
|
| Call protection: | Non-callable before April 15, 2013, thereafter subject to hurdle at 130% of conversion price
|
| Puts: | April 29, 2013 and March 30, 2015
|
| Price talk: | 3.5% to 4%, up 35% to 40%
|
| Pricing date: | March 2, after the close
|
| Settlement date: | March 30
|
| Guarantees: | Vedanta Resources plc
|
| Distribution: | Regulation S
|
© 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.
