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Vedanta prices US$1B bond offering; US$1.67B debt buyback nets US$752.3M

Vedanta Resources Plc priced an offering of US$1.0 billion of 6.125% bonds due 2024 with a seven-year maturity, it said Aug. 4.

The company intends to use the net proceeds to fund its any and all offers to purchase for cash its outstanding US$774.8 million 6.00% bonds due 2019 and US$900.0 million 8.25% bonds due 2021 and to repay existing debt.

In late July, Vedanta launched a cash tender offer to buy back US$1.67 billion of its outstanding 2019 and 2021 bonds.

The tender offer expired Aug. 3, with Vedanta receiving valid tenders for the purchase of US$522.5 million of the 2019 bonds and US$229.8 million of the 2021 bonds.

The company will pay US$1,053.75 per US$1,000 principal amount for the 2019 bonds and US$1,117.50 per US$1,000 principal amount for the 2021 bonds.

Following the cancellation of tendered bonds, US$252.3 million of the 2019 bonds and US$670.2 million of the 2021 bonds will remain outstanding.

The company noted that its refinancing plan is funded through a mix of bonds and term loans. Vedanta previously received commitments from global and Indian banks for US$840 million of term loans with a final maturity of five years.

Following completion, the U.K.-based miner is expected to have no major bank loan repayments due over the next 18 months, it added.