Vedanta Resources Nears $1.25 Billion Fundraising with Standard Chartered Bank
Vedanta Resources, the London-based parent of India’s oil-to-metals conglomerate Vedanta, is close to finalizing a $1.25 billion loan availed jointly from Standard Chartered Bank and Cerberus Capital Management that could help it avert a default on bonds due in January, said people aware of the matter.
Standard Chartered Bank will underwrite $950 million of the $1.25 billion financing while New York-based Cerberus Capital will cover the remaining $300 million, the people said.
Standard Chartered Bank is in talks with Davidson Kempner, Ares Management and Varde Partners to distribute a portion of its $950 million loan commitment. Vedanta Resources confirmed to ET that it was close to finalizing the financing arrangement.
“We are in the process of finalising the raising of $1.25 billion for the purposes of refinancing and managing our upcoming maturities,” said a spokesperson for Vedanta Resources. “We are at an advanced stage of these discussions and continue to engage with bondholders simultaneously. The relevant details will be shared at an appropriate time.”
Vedanta Resources needs to redeem $1 billion worth of bonds next month. It also needs to redeem a second set of bonds worth $950 million in August.
JP Morgan, on behalf of Vedanta Resources, will be reaching out to bondholders once the financing is in place to restructure the bonds maturing over the next few months.
ET had first reported about the financing discussions between Vedanta Resources and Standard Chartered Bank and Cerberus Capital in two separate editions dated September 6 and November 2.
SOURCE:https://economictimes.indiatimes.com
