Vedanta Resources may raise $1.2 billion to refinance debt
Vedanta Resources (VRL) plans to raise $1.2 billion in the near term through senior unsecured notes to refinance existing debt and improve its financial position.
The company is in talks with investors to raise $500 million in the coming weeks through a bond issue to partly refinance $606 million of outstanding 13.875% notes maturing in 2028. This is a re-tap of the bonds raised in September and the instrument is likely to be priced around 10.2%, where the bond is trading.
The company is holding talks with global investors Wednesday on the proposed offering, which may be structured as either 3.5-year or 7-year bonds.
Preliminary ratings from S&P and Fitch are B-, which is conditional on refinancing the 2028 bonds.
The new $1.2 billion issuance, combined with $1.2 billion already raised since September 2024, will extend debt maturities, reduce interest costs by $45-50 million annually, and eliminate restrictive covenants on existing debt, said Fitch Ratings in a report recently.
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