Vedanta Resources close to raising $1.25 billion from Standard Chartered Bank, Cerberus Capital
Vedanta Resources, the London-based parent of India's oil-to-metals conglomerate Vedanta, is close to finalizing a $1.25 billion loan availed jointly from Standard Chartered Bank and Cerberus Capital Management that could help it avert a default on bonds due in January, said people aware of the matter.
Standard Chartered Bank will underwrite $950 million of the $1.25 billion financing while New York-based Cerberus Capital will cover the remaining $300 million, the people said requesting anonymity. Other credit investors could join as Standard Chartered Bank is expected to distribute or «sell down» its share of the loan, they added.
The loan could have a tenor of about three years with interest rate in the 'high teens', the people said.
Standard Chartered Bank is in talks with Davidson Kempner, Ares Management and Varde Partners to distribute a portion of its $950 million loan commitment.
Vedanta Resources confirmed to ET that it was close to finalising the financing arrangement.
«We are in the process of finalising the raising of $1.25 billion for the purposes of refinancing and managing our upcoming maturities,» said a spokesperson for Vedanta Resources.
«We are at an advanced stage of these discussions and continue to engage with bondholders simultaneously. The relevant details will be shared at an appropriate time.»
Vedanta Resources needs to redeem $1 billion worth of bonds next month.
It also needs to redeem a second set of bonds worth $950 million in August.
As per the financing terms, Vedanta Resources would have to reach a settlement with the existing bondholders of the January 2024 bonds and get them to agree to roll over a part of their dues to a future date. It may also require the company to repay
