DEAL DETAILS
Khaitan & Co Advised Barclays Bank PLC on grant of a syndicated secured rupee term loan facility comprising of total commitments of INR 1500 crore (“Facility”) to Vedanta Limited (“Borrower”) which was arranged by Barclays Bank PLC. The Facility is secured by (a) first ranking exclusive charge by way of hypothecation on all present and future movable assets including CWIP of the Borrower which include: (i) 400 KTPA Copper Smelter Plant along with 246 KTPA Refinery and Ancillary Plants including 96 KTPA Copper Rod Plant, 1300 KTPA Sulphuric Acid plant and 230 KTPA Phosphoric Acid Plant at Tuticorin; and (ii) 160 MW Thermal Power Plant (TPP) at Tuticorin; and (b) a first ranking and exclusive charge on the 10,32,37,916 fully paid up equity shares issued by Hindustan Zinc Limited (“HZL”) and held by Borrower. Khaitan & Co further advised Barclays Bank PLC in relation to assignment and transfer of commitments aggregating to INR 300 crore out of the Facility to Axis Finance Limited. Khaitan & Co, also advised on the amendment and accession to the Facility documentation for additional commitments aggregating to INR 150 crore and INR 50 crore, respectively by Enam Holdings Private Limited and Profitex Shares and Securities Private Limited as non-accordion lenders outside of the syndication in relation to commitments.
Transaction scope involved diligence of the shareholders agreement of HZL between the Government of India and the Borrower to determine the risks involved in creation of pledge over the shares of HZL and advising the client on appropriate covenants, conditions and events of default relating to such shares of HZL. We undertook due diligence of the financing documents of the Borrower to determine consent requirements for further borrowings and creation of security over assets of the Borrower.
Manisha Shroff (Partner), Dipayan Dash (Principal Associate), Mayank Chaturvedi (Associate), Mishi Malhotra (Associate), Nikunj Mehta (Associate) and Siddarth Goel (Associate) represented the client on the negotiation and closing of the loan transaction. Arindam Ghosh (Partner), Anvita Mishra (Principal Associate), Shashank Patil (Principal Associate) and Jayantika Khanna (Senior Associate) advised the client in respect of stock exchange compliances in respect of pledge of HZL’s shares. Mehul Shah (Partner) advised the client in relation to specific provisions of the shareholders’ agreement of HZL and implications of the same from a security creation perspective.
The post appeared first on .