Vedanta Resources in talks with Standard Chartered Bank for $1.3 billion loan
economictimes.indiatimes.comVedanta Resources in talks with Standard Chartered Bank for $1.3 billion loan
Vedanta Resources (VRL) is in discussions with Standard Chartered Bank for a loan of $1.2 billion to $1.3 billion against brand fee receivables without any restructuring pre-conditions.
The loan deal, if sealed, will take care of debt repayments until January without the need to restructure the bonds. The discussions regarding lending rates are currently in progress and the loan could be priced around 14-15% with a duration of three years.
The company has appointed advisory firm Morrow Sodali to identify the holders of its $1 billion 13.875% bonds and $1 billion 6.125% bonds due in 2024 and the $1.2 billion 8.95% bonds due in 2025, as reported earlier.
It is also planning to hold a non-deal roadshow next week in Singapore and Hong Kong to gauge investors' interest in restructuring.
«VRL is in discussions with Standard Chartered Bank to raise $1.2 billion to $1.3 billion against brand receivables of three years and the loan is expected to have a tenor of three years,» said a source. «If the loan is in place the talks of bond restructuring will subside.
Though they are running a parallel process to gauge investor interest for an exchange.»
A Vedanta spokesperson did not respond while a Standard Chartered spokesperson declined to comment on queries.
In early August, S&P had lowered VRL's outlook from Stable to Negative due to increased risks in refinancing amid a tough funding environment and limited cash. S&P mentioned that a downgrade in VRL's rating could happen if they don't make progress in fundraising by the end of December 2023 or if they engage in distressed debt exchanges.
VRL received $413 million as brand fee from Vedanta Limited in
