Petra Diamonds Limited Finalisation of Covenant Changes (3963K)
April 10 2018 - 3:10AM
UK Regulatory
TIDMPDL
RNS Number : 3963K
Petra Diamonds Limited
10 April 2018
10 April 2018 LSE: PDL
Petra Diamonds Limited
("Petra," the "Company" or the "Group")
Finalisation of Covenant Changes
Petra Diamonds Limited today announces that it has finalised the
agreement with Absa Bank Limited (acting through its Corporate and
Investment Banking division), FirstRand Bank Limited (acting
through its Rand Merchant Bank division), Investec Asset Management
Proprietary Limited and Nedbank Limited (acting through its
Corporate and Investment Banking division) (together the "Lender
Group") with regards to the waiver of the measurement of the 31
December 2017 EBITDA covenants related to its banking facilities,
coupled with a reset of the 30 June 2018 and 31 December 2018
EBITDA covenants. The reset covenants are as previously announced
and available to view at:
https://www.petradiamonds.com/investors/fixed-income-investors/banking-covenants/.
As noted in the Company's Interim Results on 19 February 2018,
no upfront fees were payable as a result of the covenant changes,
however an interest rate ratchet mechanism will apply as
follows:
-- an increase of 1% in the event that the Company's
Consolidated Net Debt is greater than 2.5x but less than 3x
Consolidated EBITDA; and
-- an increase of 2% in the event that the Company's
Consolidated Net Debt exceeds or is equal to 3x Consolidated
EBITDA.
-- Such ratchet will be applied retrospectively to the six month
period ending 30 June 2018 and six monthly thereafter, as
applicable.
The Company's bank facilities and interest rates are available
to view at:
https://www.petradiamonds.com/investors/fixed-income-investors/banking-facilities/.
No other conditions were required by the lender group in order
to finalise this agreement.
The Lender Group commented:
"We continue to remain fully supportive of Petra as the Company
nears completion of its heavy investment phase and continues to
transition from expansion and development to steady state
production."
Johan Dippenaar, Chief Executive Officer, commented:
"The finalisation of this agreement with our Lender Group
validates its support of Petra's business and strategy, as we
negotiate this final stretch of our expansion programmes."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Ends
For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Cathy Malins cathy.malins@petradiamonds.com
Buchanan Telephone: +44 20 7466 5000
(PR Adviser)
Bobby Morse bobbym@buchanan.uk.com
Anna Michniewicz annam@buchanan.uk.com
About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and
an increasingly important supplier of rough diamonds to the
international market. The Company has a diversified portfolio
incorporating interests in five producing operations: three
underground mines in South Africa (Finsch, Cullinan and
Koffiefontein), the Kimberley Ekapa Mining joint venture (including
the Kimberley Underground mine and extensive tailings retreatment
operations) and one open pit mine in Tanzania (Williamson). It also
maintains an exploration programme in Botswana and South
Africa.
Petra's strategy is to focus on value rather than volume
production by optimising recoveries from its high quality asset
base in order to maximise their efficiency and profitability. The
Group has a significant resource base in excess of 300 million
carats, which supports the potential for long-life operations.
Petra conducts all operations according to the highest ethical
standards and will only operate in countries which are members of
the Kimberley Process. The Company aims to generate tangible value
for each of its stakeholders, thereby contributing to the
socio-economic development of its host countries and supporting
long-term sustainable operations to the benefit of its employees,
partners and communities.
Petra is quoted with a premium listing on the Main Market of the
London Stock Exchange under the ticker 'PDL' and is a constituent
of the FTSE4Good Index. For more information, visit
www.petradiamonds.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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