By Rebecca Melvin
Princeton, N.J., Jan. 23 - Vedanta Finance (Jersey) Ltd. priced $725 million of 20-year convertible bonds at par to yield 4.6% with an initial conversion premium of 48%, according to market sources.
The bonds were issued by Vedanta Finance and will be guaranteed by Vedanta Resources plc.
The bonds priced at the cheap end of talk, which was 4.1% to 4.6% for the coupon and 48% to 55% for the initial conversion premium.
Bookrunner for the bonds was Barclays Bank plc.
There is a greenshoe of an additional $125 million of bonds.
There is an investor put on Feb. 21, 2013.
Proceeds of the issue will be applied toward refinancing subsidiary debt, Vedanta's capital expenditure program including the Jharasaguda aluminum smelter project, and for other general corporate purposes.
Vedanta had been expected to issue bonds for some time by emerging markets sources. Originally a $500 million or more eurobond had been anticipated, with timing originally scheduled for the fourth quarter of 2005. Deutsche Bank, Merrill Lynch and Morgan Stanley were the bookrunners.
One source told Prospect News Monday that during a conference call held last week Vedanta said it would disclose more information on an upcoming bond issue. The source said this meant that it would be "unlikely" that Vedanta would now go ahead with the eurobond offering.
U.K.-based Vedanta is a zinc and aluminum mining company with its principal operations in India.
| Issuer: | Vedanta Finance (Jersey) Ltd.
|
| Issue: | Foreign currency convertible bonds
|
| Bookrunner: | Barclays Bank
|
| Amount: | $725 million
|
| Greenshoe: | $125 million
|
| Maturity: | 2026
|
| Coupon: | 4.6%
|
| Price: | Par
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| Yield: | 4.6%
|
| Conversion premium: | 48%
|
| Put: | In year seven
|
| Price talk: | 4.1%-4.6%, up 48%-55%
|
| Pricing date: | Jan. 23
|
| Settlement date: | Feb. 21
|
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