EM-focused Vedanta launches consent solicitations for seven bonds

By Cady Vishniac

Detroit, Jan. 11 – Vedanta Resources Ltd. (formerly Vedanta Resources plc) has begun consent solicitations for seven note series with maturities from 2021 to 2026, according to a press release.

The company is seeking amendments to each series that would allow for the acquisition of more of its equity shares by the company itself and subsidiaries Vedanta Holdings Mauritius Ltd. and Vedanta Holdings Mauritius II Ltd.

The notes for which the company is seeking consents are:

• $900 million of 8¼% notes due June 7, 2021 (ISINs: USG9328DAG54, US92241TAG76) issued by the company;

• $1 billion of 6 3/8% notes due July 30, 2022 (ISINs: USG9328DAM23, US92241TAK88) issued by the company;

• $500 million of 7 1/8% notes due May 31, 2023 (ISINs: USG9328DAJ93, US92241TAJ16) issued by the company;

• $1 billion of 6 1/8% notes due Aug. 9, 2024 (ISINs: USG9328DAP53, US92241TAM45) issued by the company;

• $400 million of 8% notes due April 23, 2023 (ISINs: USG9T27HAB07, US92243XAB73) issued by Vedanta Resources Finance II plc and guaranteed by the company;

• $600 million of 9¼% notes due April 23, 2026 (ISINs: USG9T27HAA24, US92243XAA90) issued by Vedanta Resources Finance II and guaranteed by the company; and

• $1 billion of 13 7/8% notes due Jan. 21, 2024 (ISINs: USV9667MAA00, US92243XAD30) issued by Vedanta Resources Finance II and guaranteed by the company and subsidiaries Twin Star Holdings Ltd. and Welter Trading Ltd.

Holders of record as of Jan. 25 may deliver their consents by the early deadline of 11 a.m. ET on Jan. 27 in order to receive a consent fee of $1 per $1,000 face amount of notes. Holders who deliver their consents by the final deadline of 11 a.m. ET on Jan. 29 will receive $0.50 per $1,000 face amount of notes.

Meetings to vote on an extraordinary resolution in favor of Vedanta’s proposed amendments will be held for all note series in the order in which they are listed above beginning at 8 p.m. ET on Feb. 1, with each meeting beginning either 15 minutes after the previous meeting begins or immediately after the previous meeting ends. Announcements of meeting results or adjournments will take place as soon as possible after each meeting, with consent fee settlement five business days after each note series meeting for which the extraordinary resolution is passed.

Vedanta informed its board that the company and its subsidiaries intended to buy all of its fully paid shares and delist itself from the Indian Stock Exchanges. The Indian Stock Exchanges granted approval in principle of a take-private transaction on Sept. 28, and Vedanta launched a tender offer on Sept. 29. On Sept. 10, the company announced that it had failed to buy back enough of its equity to complete the take private transaction.

The company still intends to acquire its equity shares in the furtherance of its financial goals and has proposed this amendment to the terms of its notes in order to allow for more equity share purchases. Vedanta Holdings Mauritius II acquired 185 million equity shares of Vedanta, or 4.98% of the equity capital, on Dec. 24. The company’s stake is now 55.11%. The company launched an offer for up to 370,751,500 additional equity shares, or 10% of the voting share capital, on Jan. 9.

J.P. Morgan Securities plc (+852 2800 8220, +44 20 7742 5940, 212 834-4533, liability_management_asia@jpmorgan.com) is the solicitation agent, and Morrow Sodali Ltd. (203 609-4910, +852 2319 4130, +44 20 8089 3287, vedanta@investor.morrowsodali.com, https://www.bonds.morrowsodali.com/vedanta) is the information and tabulation agent.

Vedanta Resources is a London-listed natural resources company that produces aluminum, copper, zinc, lead, silver, iron ore, oil, gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka.

© 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.