Vedanta Resources seeks to extend maturity of shorter-term bonds by 3 years

economictimes.indiatimes.com:

Vedanta Resources Limited, the holding company of the mining conglomerate, Monday discussed the potential tenure extension of the bonds due in 2024 and 2025 by three years to 2027 through a partial exchange as part of the liability management exercise in meetings held with investors in Hong Kong.

VRL's proposal to extend the maturity of the shorter-term bonds by three years, however, has irked some investors, as it means that bonds maturing in 2026 will be redeemed before the 2024 and 2025 bonds.

ET earlier this month had reported that VRL hired Morrow Sodali's services to identify holders of its $1 billion bonds maturing in January 2024, another $1 billion set to mature in August 2024, and a $1.2 billion bond due in 2025.
A Vedanta spokesperson said: “The Vedanta team is travelling to Singapore and Hong Kong to meet existing bondholders. These meetings are being organised by JP Morgan and Standard Chartered. These are purely non-deal roadshows to meet and greet our existing investors.” During meetings, the company management also disclosed that, as part of its liability management exercise (LME), it would have limited cash available. It plans to pay $200 million to Trafigura to free up the security and use it to raise funds by securitising brand fee. In June, VRL had raised $200 million from commodities trading company Trafigura Group to meet some debt repayments. VRL's total aggregated holdco debt is $5.9 billion at the end of June 2023 of which $ 3.7 billion is bonds.
VRL is in discussions with lenders to borrow $ 1.3 billion loan from banks against the three year brand fee, as reported. It also plans to prepay a $350 million loan from Oaktree Capital Management.

Vedanta Resources in talks with