Vedanta begins Dutch auction tender offer for 5.5% convertibles

By Angela McDaniels

Tacoma, Wash., Feb. 1 – Vedanta Resources plc began a modified Dutch auction tender offer for up to $250 million principal amount of the $904.1 million outstanding 5.5% guaranteed convertible bonds due 2016 issued by Vedanta Resources Jersey Ltd., according to a company filing with the London Stock Exchange.

Tender instructions may be submitted in the form of either a competitive offer, which specifies a purchase price in an amount divisible by $250 per $100,000 principal amount of the convertibles, or a non-competitive offer, which does not specify a purchase price.

The purchase price selected for the convertibles will be the lowest price that will enable the offeror to purchase a principal amount of convertibles not in excess of the cap.

If the principal amount of convertibles tendered at or below the purchase price is greater than the cap, the offeror intends to accept all convertibles tendered for purchase at the purchase price on a pro rata basis.

The offeror will also pay accrued interest.

The offer will end at 11 a.m. ET on Feb. 8. The settlement date will be Feb. 10.

The offeror said it will consider further opportunities to repurchase convertibles and its other listed debt securities as and when they arise.

J.P. Morgan Securities plc (+44 207 134 1478 or ECM__Europe_Syndicate_Desk@jpmorgan.com) and Standard Chartered Bank (+65 6596 8435 or liability_management@sc.com) are the dealer managers. The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or vedanta@lucid-is.com).

Vedanta Resources is a London-listed natural resources company that produces aluminum, copper, zinc, lead, silver, iron ore, oil, gas and commercial energy.

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