This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Vedanta Prices $300mn Tap of 2029s; Issues Conditional Partial Call for 2028s
October 22, 2024
Vedanta Resources raised $300mn via a tap of its 10.875% 2029s at a yield of 9.998% and a price of 102.75 vs. initial guidance of 102.5. The bond is rated CCC+ (S&P). The issuer is Vedanta Resources Finance II and the bonds have a guarantee by Vedanta Resources Ltd, Twin Star Holdings and Welter Trading. Proceeds will be used to partially refinance its $608mn 13.875% 2028s for which the company has issued a conditional call notice. According to the notice, the company will redeem a certain amount of its 13.875% 2028s at par including accrued interest. The record date is set as one business day immediately prior to the date for payment. The notes have the following covenants:
- Negative lien on brand fee receivables, other than existing charges
- Cap on incurred debt:
- For parent guarantors and subsidiaries, the Fixed Charge Coverage Ratio (FCCR) has to exceed, 1.75x until March 2025, 2x until March 2026, 2.25x until March 2027 and 2.5x thereafter
- For subsidiary guarantors:
- Attributable debt-to-EBITDA cannot exceed 6x currently and 5.5x after 30 September 2025
- A debt cap of $4bn excluding intercompany loans (against a 40.99% stake held by subsidiary guarantors) or consolidated FCCR of parent guarantor and subsidiaries at 3.5x
- Restricted payments: A builder basket at 50% of net income, which increases to 100% of net income, if consolidated FCCR is greater than 3.5x
- Other covenants include a limitation of distribution of net proceeds from asset sales and a change of control (CoC) event
The bond is callable in the 3rd year at par plus 50% of coupon, in the 4th year at par plus 25% of coupon and in 5th year at par. Proceeds will be used to partially refinance $608mn of its 13.875% 2028s for which the company has issued a conditional call notice. According to the notice, the company will redeem a certain amount of its 13.875% 2028s at par including accrued interest. The record date is set as one business day immediately prior to the date for payment.
Go back to Latest bond Market News
Related Posts:
Vedanta Upsizes QIP to Over $1bn
July 17, 2024
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.