Vedanta Resources announces pricing of bond offering

Vedanta Resources announced the pricing of the offering of bonds in the aggregate principal amount of US$ 1.0 billion of 6.375 percent bonds due 2022.

Vedanta intends to use the net proceeds from this offering primarily to fund its offer to purchase for cash any and all of its outstanding US$ 750,000,000 9.50 percent bonds due 2018 and US$ 1,200,000,000 6 percent bonds due 2019 and to repay its other existing indebtedness.

Vedanta has received and accepted for purchase approximately US$ 370,868,000 of the 2018 Bonds and US$ 425,028,000 of the 2019 Bonds (excluding US$ 227,000 of the 2018 Bonds and US$ 200,000 of the 2019 Bonds that remain subject to the guaranteed delivery procedures).

With this transaction, Vedanta has proactively refinanced part of its 2018 and 2019 maturities and extended average debt maturity.

Vedanta received strong investor interest for the tenders and these bonds, underlining the access that it has to the capital markets and diversified funding sources. This is the largest single-tranche G3 high yield bond issuance from Asia ex-Japan since 2015.

Tom Albanese, Chief Executive Officer said, "This transaction is in line with our financial strategy to extend maturities, optimize the balance sheet, and create value for all stakeholders. We are pleased with the strong demand these bonds received, with support from all major markets."

The Bonds are being offered and sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended ('Securities Act'), and outside the United States under Regulation S under the Securities Act. The offering is expected to close on January 30, 2017, subject to customary closing conditions.