A subsidiary of UK-based Vedanta Resources has accepted bids worth $1.75 billion for a three-tranche issuance of dollar bonds, as it seeks to refinance high-yielding outstanding debt, three merchant bankers said on Friday.
The pricing was 25 basis points below the initial guidance of 7.25 per cent, 7.6250% and 8.00 per cent, they added.
The bankers requested anonymity as they are not authorised to speak to the media, while the company did not respond to a Reuters email seeking comment.
The bonds will be guaranteed by the parent firm as well as subsidiaries Twin Star Holdings, Welter Trading and Vedanta Holdings Mauritius II. The notes are expected to be rated Ba3/BB–/BB, in line with the issuer.
Proceeds will be primarily be used to refinance higher yielding debt worth over $2 billion.
