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BASIS POINT-Closing extended on US$300m Vedanta loan

Source : REUTERS
Last Updated: Fri, Nov 30, 2012 18:41 hrs

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)

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