vedanta-launches-cb-to-fund-acquisitions

Vedanta launches CB to fund acquisitions

The London-listed mining and metals firm with a footprint mostly in India launches a $1.25 billion convertible bond issue, just one day after it announces an M&A deal.

London-listed Vedanta Resources launched a $1.25 billion convertible bond issue on Friday, one day after its subsidiary Sesa Goa bought the mining assets of Goa-based Dempo Group for $368 million.

Mining and metals group Vedanta on Friday evening launched a $1.25 billion convertible bond issue, upsized from $1 billion announced earlier in the day. The CBs, which are due 2016, will have a coupon of 5.5% payable semi-annually and will be convertible into ordinary shares of Vedanta at a conversion price of $36.48. The price represents a premium of 35% to the volume-weighted average price VWAP on the London Stock Exchange between launch and pricing, and a 46% premium to the 30-day VWAP.

The...

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