Vedanta commences consent solicitation for bonds due 2024, 2025

Chicago, July 7 – EM-focused Vedanta Resources Ltd., Vedanta Resources Finance II plc, Twin Star Holdings Ltd. and Welter Trading Ltd. have started a consent solicitation for two series of notes, according to a document.

The issuers are soliciting consents for the $1 billion 13 7/8% bonds due 2024 (Cusips: V9667MAA0, 92243XAD3) and the $1.2 billion of 8.95% bonds due 2025 (Cusips: G9T27HAD6, 92243XAE1), both issued by Finance II and guaranteed by Vedanta Resources.

The central reason for the consent solicitation is that Vedanta is seeking to increase the subsidiary guarantors’ headroom under the indebtedness covenant in the terms and conditions for each series of bonds to enable the subsidiary guarantors to raise more debt for the purpose of proactive refinancing of existing debt of Vedanta and/or acquiring more equity shares of the subsidiary guarantors.

In terms of acquiring more equity shares, the company is aiming to streamline the structure of the Vedanta Group and has been acquiring equity shares in the subsidiary companies. To facilitate any acquisitions, the company will need further debt financing.

An early consent fee of $2.50 per $1,000 note will be paid to early consenting noteholders who vote in favor of the extraordinary resolution and a late consent fee of $1.25 per note will be paid to late consent noteholders.

The early consent fee deadline is 11 a.m. ET on July 21.

The voting deadline is 11 a.m. ET on July 26.

The bondholder meetings will be held starting at 9 p.m. ET on July 28.

Barclays (+44 20 3134 8515, +852 2903 3266, eu.lm@barclays.com), Deutsche Bank AG, Singapore Branch (+852 2203 8652, +65 6423 5342, asiasyn@list.db.com), J.P. Morgan Securities plc (+44 20 7742 5940, +852 2800 8220, 212 834-4533, liability_management_asia@jpmorgan.com) and Standard Chartered Bank (+44 20 7885 5739, +852 3983 8658, +65 6557 8286, liability_management@sc.com) are the solicitation agents.

Morrow Sodali Ltd. is the information and tabulation agent (+44 20 8089 3287, +852 2319 4130, 203 609-4910, vedanta@investor.morrowsodali.com, https://bonds.morrowsodali.com/vedanta).

Vedanta is a diversified metals and mining, oil and gas and power generation company. The company’s business is principally located in India but also has operations in Zambia, Namibia, South Africa, the United Arab Emirates, Japan, South Korea and Taiwan.

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