Vedanta nears deal to raise $1.25 billion funding via private loan

By Saikat Das

Vedanta Group is in advanced talks to raise a $1.25 billion private loan with an interest rate between 18% and 20% as it seeks to overhaul its debt. 

 

The Indian conglomerate is nearing a deal after weeks of negotiations with lenders including Cerberus Capital Management LP, Davidson Kempner Capital Management LP, Varde Partners Inc. and Ares SSG Capital Management Ltd., according to people familiar with the matter, who asked not to be named because the matter is private.

Indian billionaire Anil Agarwal’s miner has been looking for fresh sources of cash to refinance around $3 billion of US-currency bonds coming due over the next two years. Bloomberg first reported on the company’s talks for a private loan of $1 billion on Sept. 21.

Representatives for Vedanta also proposed delaying payments on the dollar bonds, a plan that met with investor opposition, Bloomberg reported on Sept. 28.  

Spotlight Still on Vedanta $3 Billion Debt Despite Spinoff Plan

Vedanta continues to work on the refinancing of maturing debt, a spokesperson told Bloomberg on Saturday. 

“No comment can be made at this time about the outcome of the exercise but the company remains confident in its ability to effect a successful process,” the spokesperson said. 

India is a hot market for private credit, in part because of rules that limit bank lending for transactions such as mergers and acquisitions. Deals often have floating rates of interest and pricing gets set up front.