Petra Diamonds Limited Finalisation of Covenant Changes (3963K)

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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: [phone] 

Cathy Malins [e-mail]

Buchanan Telephone: [phone]

(PR Adviser)

   Bobby Morse                                                               [e-mail] 
   Anna Michniewicz                                                       [e-mail] 

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

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April 10, 2018 04:10 ET (08:10 GMT)