HONG KONG, Nov 29 (Basis Point) - General syndication of the
US$300m loan for Vedanta Resources Plc has been further
extended, with some commitments in from Indian banks, according
to a source familiar with the matter.
Other domestic banks are still processing approvals, and
closing is targeted for the first half of December, the source
added. Further details were not revealed.
Responses for the loan, led by sole mandated lead arranger
and bookrunner State Bank of India, were originally due around
mid-October. The facility is split equally into a five-year
tranche and a six-year tranche. Both tranches amortise in two
equal instalments in the last year of maturity.
Based on an average life of 4.75 years and a margin of 425bp
over Libor, the five-year tranche offers an all-in of 450bp and
the arranger title for commitments of US$20-50m, or 445bp all-in
and the lead manager title for US$5-20m.
Based on an average life of 5.75 years and a margin of 435bp
over Libor, the six-year tranche offers an all-in of 475bp and
the lead arranger title for commitments of US$100m, or 470bp
all-in and the arranger title for US$50-100m. Funds are for
general corporate purposes.
In December 2011, Vedanta Resources got a US$2.977bn
syndicated loan backing its acquisition of Cairn India Ltd.
Pieces of the two-tranche facility have been trading this year
in the secondary market.
(Reporting by Maggie Chen; Editing by Gavin Stafford)