Vedanta Resources is seeking consent from its dollar bondholders to change certain covenants in order to take on more debt. This debt would be used for refinancing and/or to acquire more shares in its Indian subsidiary Vedanta Ltd. The offer to change terms applies for its $1bn 13.875% 2024s and $1.2bn 8.95% 2025s, issued by Vedanta Resources Finance II, guaranteed by Twin Star Holdings and Welter Trading respectively. Holders who consent before the early bird deadline of July 21 will receive $2.5 per $1,000 in principal and those who consent after the early bird deadline but before the offer deadline will receive $1.25. Vedanta would need at least two-third of votes in favor. IFR notes that the new offer could suggest that Vedanta is considering another attempt to take its subsidiary Vedanta Ltd. private after a failed delisting attempt last year.
Vedanta’s dollar bonds were trading stable – its 8.95% 2025s were at 97.5, yielding 9.8%.