Vedanta Resources eyes USD secured bonds to back Indian unit privatization; ends PE option

Vedanta Resources Ltd (VRL) aims to price planned USD senior secured 12-18-month bonds as soon as next week (10 August-14 August) to part-fund its proposed take-private of 50.14%-owned India-listed flagship Vedanta Ltd [NSE:VEDL], according to two sources familiar with the matter.


The Anil Agarwal-owned commodity conglomerate is currently targeting to raise USD 3.6bn-USD 3.75bn debt to back the take private, said one of the sources. The bidder is also seeking an acquisition-loan facility, the said.


The size of the bond deal is subject to the level of commitments the loan deal attracts, said the first two and a third source familiar. The second and third sources said the loan deal is expected to close by the end this week (7 August), though some commitment approvals remain pending.


The currently targeted bond range is USD 440m-USD 1.3bn, said the first source. The current plan is for the offering to emerge on 10 August, said the second source. The bonds would be backed by equity, they both said.


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by Manju Dalal