Vedanta Resources Secures $1.25 Billion in Debt Refinancing from Private Credit Lenders Vedanta Resources Ltd (VRL), the holding company of the Vedanta group, has successfully secured $1.25 billion from private credit lenders for debt refinancing and a new credit facility, according to a statement released late on Wednesday. The fundraising initiative is designed to establish a long-term sustainable capital structure and reaffirm Vedanta’s ability to access global capital markets, showcasing investor confidence in the company’s underlying business.
While the company did not disclose the names of the lenders involved, it emphasized that the loan, which matures in April 2026, was raised from a group of reputable financial institutions. VRL stated that the funds will be used to refinance existing liabilities, and it is concurrently seeking to amend certain covenants and waivers to enhance the credit package of its bonds due to mature in 2024. The company plans to announce the outcome of the consent solicitation from existing lenders in due course.
The $1.25 billion loan is guaranteed by VRL and its subsidiaries, collateralized by a negative pledge of 13.26% shares held by the parent in India-listed Vedanta Ltd, along with the annual brand fee it receives from various subsidiaries.
Earlier reports from Moneycontrol on December 5 indicated that Vedanta Resources, led by billionaire Anil Agarwal, was set to sign a $1.2 billion loan agreement with global private credit funds. This initiative aims to partially repay $3.2 billion of bonds maturing in 2024 and 2025. The funding round, reportedly led by New York-based Cerberus Capital Management, involved underwriting approximately $300 million, with contributions from Ares SSG Capital Management, Davidson Kempner Capital Management, and Varde Partners.
This transaction is deemed crucial for Vedanta Resources to avert potential default, with the loan expected to be priced upwards of 18 percent per annum. The mining and metals conglomerate faces upcoming repayments, including $1 billion of 13.875 percent bonds in January, $1 billion of 6.125 percent paper due in August 2024, and $1.2 billion of 8.95 percent bonds maturing in March 2025.
