Page 29 - IACC Newsletter June 2013 Issue 11

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India’s Investments in U.S
Vedanta raises $1.7 billion via bonds to repay part of Cairn debt
The bonds are being offered and sold in a private offering to qualified institutional buyers outside the US
Vedanta Resources Plc. will use the $1.7 billion it has raised through bonds to partly repay the debt taken for Cairn India
Ltd.’s acquisition. “Vedanta Resources Plc announced the pricing of the offering of bonds in the aggregate principal
amount of $1.7 billion,” the company, led by industrialist Anil Agarwal, said in a statement recently, adding, this
represents one of the largest corporate high-yield bond issuances out of Asia ex-Japan.
“Vedanta intends to use the proceeds of the offering to refinance a portion of its obligations under its existing 2010
term loan facility (that was entered into partly finance Vedanta’s acquisition of a controlling stake in Cairn India), which
will result in a cancellation of Vedanta’s commitments under a bridge facility, and to pay related fees and expenses and
for general corporate purposes,” it said.
This is a landmark transaction for Vedanta, the firm said, adding that it is the fourth successful bond transaction. The
company said: “The bonds are being offered and sold in two tranches, consisting of $1.2 billion aggregate principal
amount of 6% bonds due January 2019 and $500 million aggregate principal amount of 7.125% bonds due May 2023.”
The bonds are being offered and sold in a private offering to qualified institutional buyers outside the US and the
offering is expected to close on 3 June 2013, subject to customary closing conditions.
“This transaction demonstrates the financial strength and global recognition of Vedanta Group as major natural
resources corporate. It is our fourth bond transaction and each time we have been met with increasingly overwhelming
response by investors,” said Agarwal, chairman of Vedanta Resources. Vedanta said this is the largest ever bond offering
by any Indian firm and a high yield Asian issuer and the “lowest coupon in the long 5 year tranche for an Indian high
yield issuer in the G3 debt markets” besides being “one of the largest order-book size for an Indian issuer—in excess of
$10 billion”.
Chennai based 8KMiles acquires California based FuGen Solutions for $7.5
million
Cloud computing firm 8KMiles founded by Indian entrepreneur Suresh Venkatachari has acquired US-based technology
company FuGen Solutions for $7.5 million (Rs 41 crore).
The acquisition will help 8KMiles expand its existing solutions to meet the security and compliance needs of large
enterprises and government agencies better. "By incorporating and expanding on FuGen's intellectual property, we are
better poised to meet the security needs of large enterprises and government agencies," said Suresh Venkatachari,
chairman and CEO of 8KMiles which is headquartered in California.
Though 8KMiles has expertise in cloud solutions, the acquisition will further enhance its security services platform in the
cloud. FuGen will become a subsidiary of 8KMiles and provide its technology to customers in industries like e-commerce,
energy, financial services, government and insurance.
8KMiles counts budget carrier AirAsia, ZAGG, Inc, the maker of protective accessories for consumer electronics and
ChaYoWo, a leading social gaming company among its top customers. "FuGen's intellectual property further strengthens
8KMiles cloud offering," said Lena Kannappan, FuGen founder, who will join 8KMiles as COO and serve on its board of
directors. "8KMiles will create a clear differentiation in the market to serve large enterprises and government agencies."