Vedanta buys tenders for $321.9 million 5.5% convertibles; cap lifted

By Susanna Moon

Chicago, Feb. 9 – Vedanta Resources plc said it accepted for purchase $321.9 million principal amount of 5.5% guaranteed convertible bonds due 2016 issued by Vedanta Resources Jersey Ltd.

The maximum acceptance amount for the modified Dutch auction tender offer was increased from $250 million, according to a company announcement.

The purchase price was set at $98,000 for each $100,000 principal amount.

The company said it accepted in full without proration all bonds tendered under a non-competitive offer, or those tendered at an offer price below the purchase price. Those tendered at the purchase price will be purchased using a proration factor of 30%. Bonds tendered under competitive offers will not be accepted for purchase, the release noted.

After settlement on Feb. 10, there will be $582.2 million of the bonds left outstanding.

The tender offer ended at 11 a.m. ET on Feb. 8.

Vedanta began a modified Dutch auction tender offer for up to $250 million principal amount of the $1.25 billion ($904.1 million outstanding) 5.5% convertibles on Feb. 1.

Tender instructions could have been 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 was the lowest price that would have allowed the company to purchase a principal amount of convertibles up to the cap.

The company will also pay accrued interest.

The company previously said it may look for more opportunities to repurchase the convertibles and its other listed debt securities.

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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