02 February 2022 |
LSE:
PDL |
Petra Diamonds
Limited
("Petra" or the "Company" or the
“Group”)
New First Lien
Banking Facility on more favourable terms
Petra Diamonds is pleased to announce that it has concluded a
binding, credit approved term sheet for the refinancing of its
first lien debt facility with its South African Lender Group,
providing for more favourable terms than the Group’s current first
lien facilities. The conclusion of the new facility is subject to
completion of appropriate definitive agreements, expected to be
finalised during Q3 FY 2022.
This refinancing reflects an improved Group balance sheet and
financial profile, supported by a quicker than expected diamond
price recovery and the continued recovery of exceptional
diamonds.
Richard Duffy, Chief Executive of
Petra, commented:
“The significant improvement in our facility reflects our
stronger cashflow generation and improved balance sheet resulting
from a robust diamond market and solid operational
performance.”
A new Revolving Credit Facility (“RCF”) with Absa Bank Limited
(acting through its corporate and investment banking divisions)
(“Absa”) will replace the existing RCF and term lending
arrangements with the current South African lender syndicate
comprising Absa, Nedbank, RMB and Ninety One. The new terms
include, inter alia:
- Improved structure with a single ZAR1
billion RCF replacing the existing amortising term loan
(ZAR856.1 million owed at
31 December 2021 net of unamortised
transaction costs of ZAR20.2million)
and the ZAR408.8 million RCF. During
January 2022, Petra settled the
ZAR402.2 million drawn under the
existing RCF as at 31 December 2021
from available cash balances;
- More appropriate covenant package resulting in improved
headroom and flexibility on the balance sheet;
- Extended tenure for the RCF with a maturity date of
December 2025 and a more usual bullet
payment at maturity; and
- Reduced financing costs with improved margin and commitment
fees.
Details of the new terms compared with
the previous terms:
|
Previous terms |
New terms |
Facility |
R408.8 m amortising RCF
and R876.3m gross term loan (as at 31 Dec 2021) |
R1,000m RCF |
Duration |
3 years (Mar-24) |
4 years (Dec-25), with
a 60 day buffer between the redemption of the Notes and the
maturity of the RCF |
Lenders |
Absa, Nedbank, RMB
& Ninety One |
Absa |
Margin |
JIBAR + 525 bps |
JIBAR + 415 bps, with
the margin to be reconsidered annually based on Petra’s credit
metrics with a view of further optimising the margin to be
achieved |
Commitment fee |
210 bps per annum |
125 bps per annum |
The new terms also provide improved flexibility on early Note
redemption and coupon settlement.
Covenants
|
FY22
H2 |
FY23
H1 |
FY23
H2 |
FY24
H1 |
FY24
H2 |
FY25
H1 |
FY25
H2 |
FY26
H1 |
Net Debt : EBITDA
Leverage ratio (maximum) |
4.00 |
4.00 |
3.50 |
3.50 |
3.25 |
3.25 |
3.00 |
3.00 |
Interest Cover Ratio (minimum) |
1.85 |
1.85 |
2.50 |
2.50 |
2.75 |
2.75 |
3.00 |
3.00 |
~ Ends ~
For further information, please
contact:
Petra Diamonds, London
Telephone: +44 20 7494 8203
Jill Sherratt
investorrelations@petradiamonds.com
Julia Stone
About Petra
Petra Diamonds is a leading independent diamond mining group and
a supplier of gem quality rough diamonds to the international
market. The Company’s portfolio incorporates interests in three
underground producing mines in South
Africa (Finsch, Cullinan and Koffiefontein) and one open pit
mine in Tanzania (Williamson).
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 of ca. 230 million carats,
which supports the potential for long-life operations.
Petra strives to conduct 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'. The Company’s
US$336.7 million notes due in 2026
are listed on the Irish Stock Exchange and admitted to trading on
the Global Exchange Market. For more information, visit
www.petradiamonds.com