26th Jun 2008 07:00
NOT FOR DISTRIBUTION IN THE UNITED STATES
25 June 2008
PRICING OF BOND OFFERING
LONDON, 25 June 2008 - Vedanta Resources plc ("Vedanta") today announced the pricing of the offering of bonds in the aggregate principal amount of US$1.25 billion. The bonds are being offered and sold in two tranches, consisting of (i) US$500 million aggregate principal amount of 8.75% Bonds due 2014 and (ii) US$750 million aggregate principal amount of 9.50% Bonds due 2018 (together, the "Bonds").
The Bonds are being offered and sold in a private offering to qualified institutional buyers under Rule 144A of the United States Securities Act of 1933, as amended ("Securities Act"), and outside the United States under Regulation S of the Securities Act. The offering is expected to close on 2 July 2008, subject to customary closing conditions.
J.P. Morgan Securities Ltd. and Morgan Stanley & Co. International plc are acting as Joint Global Coordinators and Barclays Bank PLC, Citigroup Global Markets Limited, Deutsche Bank AG, London Branch, J.P. Morgan Securities Ltd., and Morgan Stanley & Co. International plc are acting as Joint Bookrunners and Joint Lead Managers.
The Bonds are rated "Ba1" by Moody's, "BB" by S&P and "BB+" by Fitch. Vedanta expects to use the proceeds of the offering for, among other things, capital expenditures, working capital, repayment or redemption of existing debt and other general corporate purposes.
Vedanta has obtained in-principle approval for the listing of the Bonds on the Singapore Exchange Securities Trading Limited (the "SGX-ST"). Admission of the Bonds to the official list of the SGX-ST is not to be taken as an indication of the merits of the offering, Vedanta or the Bonds.
The Bonds have not been and will not be registered under the Securities Act, or any state securities laws of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. Vedanta has no intent to register the Bonds in the United States or any other jurisdiction.
This announcement is neither an offer to sell nor the solicitation of an offer to buy the Bonds and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation.
The Bonds will only be offered to persons in the United Kingdom who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the FSMA) in connection with the issue or sale of any Bonds may otherwise lawfully be communicated or caused to be communicated.
For further information, please contact:
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Sumanth Cidambi Associate Director - Investor Relations Vedanta Resources plc |
Tel: +44 20 7659 4732 / +91 22 6646 1531 |
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Faeth Birch Robin Walker Finsbury |
Tel: +44 20 7251 3801 |
About Vedanta Resources plc
Vedanta is a London Stock Exchange listed diversified FTSE 100 metals and mining company. Its principal operations are located throughout India, with further operations in Zambia and Australia. It is primarily engaged in copper, zinc, aluminium and iron ore businesses.
Disclaimer
This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. Forward-looking statements often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements
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