Diversified conglomerate Vedanta Resources will use the $1.7 billion (Rs 9,500 crore) it has raised through bonds to partly repay the debt taken for Cairn India acquisition.
"Vedanta Resources Plc announced the pricing of the offering of bonds in the aggregate principal amount of $1. 7 billion," the company, led by industrialist Anil Agarwal, said in a statement today, adding, this represents one of the largest corporate high yield bond issuances out of Asia ex-Japan.
"Vedanta intends to use the proceeds of the offering to refinance a portion of its obligations under its existing 2010 term loan facility (that was entered into to partly finance Vedanta's acquisition of a controlling stake in Cairn India), which will result in a cancellation of Vedanta's commitments under a bridge facility, and to pay related fees and expenses and for general corporate purposes," it said.
This is a landmark transaction for Vedanta, the natural resources giant said, adding that it is the fourth successful bond transaction.
The company said: "The bonds are being offered and sold in two tranches, consisting of $ 1.2 billion aggregate principal amount of 6 per cent bonds due January 2019 and $ 500 million aggregate principal amount of 7.125 per cent bonds due May, 2023."
The bonds are being offered and sold in a private offering to qualified institutional buyers outside the United States and the offering is expected to close on June 3, 2013, subject to customary closing conditions.