Nippon Steel not to import from overseas mills in bid to save US Steel deal
Nippon is looking to close its $14.9 billion deal for US Steel by the end of the year.
Vedanta Resources Ltd. has halted an attempt to change the terms on $2.2 billion of existing dollar-denominated notes that would have allowed the group to add more debt, following feedback from investors.
The India-focused commodities giant announced Friday that it was calling off its solicitation to modify the terms of bonds due in 2024 and 2025. The company said that it believed that the initial plan was credit positive for all stakeholders, but concluded that it may not be in its best interest after considering investor response, according to a statement to the Singapore Exchange.
In the aftermath of its initial announcement of the solicitation process on July 7, the company’s bonds were volatile, and affected notes fell to an almost three month low, while its 2022 notes rose on hopes that the additional proposed debt could be used to pay off those securities.
The mining giant’s reversal comes as it grapples with difficulties in accessing liquidity trapped at its cash-rich Indian units to pay down debt at the London-based holding firm.
(By Bijou George)
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