Petra Diamonds Limited Amendment to Bank Covenant Measurements (2821X)
26 April 2019 - 10:41PM
UK Regulatory
TIDMPDL
RNS Number : 2821X
Petra Diamonds Limited
26 April 2019
This announcement contains inside information
26 April 2019 LSE: PDL
Petra Diamonds Limited
("Petra", "the Company" or "the Group")
Amendment to Covenant Measurement for South African Banking
Facilities
Petra Diamonds Limited announces that its lender group,
including 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"), has agreed to amend the EBITDA-related maintenance
covenant levels for the respective measurement periods as
follows:
12 months 12 months 12 months 12 months 12 months
to 30 Jun to 31 Dec to 30 Jun to 31 Dec to 30 Jun
2019 2019 2020 2020 2021
Consolidated Net Debt to Consolidated EBITDA:
<= 4.5x <= 4.25x <= 3.5x <= 3.25x <= 3.0x
* New covenant ratio:
----------- ----------- ----------- ----------- -----------
<= 2.5x <= 2.5x <= 2.5x <= 2.5x <= 2.5x
* Previous covenant ratio:
----------- ----------- ----------- ----------- -----------
Consolidated EBITDA to Consolidated Net Finance Charges:
>= 2.5x >= 2.5x >= 2.75x >= 3.0x >= 3.25x
* New covenant ratio:
----------- ----------- ----------- ----------- -----------
>=4.0x >=4.0x >=4.0x >=4.0x >=4.0x
* Previous covenant ratio:
----------- ----------- ----------- ----------- -----------
Existing bank debt facilities remain unchanged as outlined
below:
Lender Type Size ZARM Size US$M(1) Interest Annual Repayment
Rate Commitment
Fees on
undrawn
facilities
ZAR Revolving 1M JIBAR October
ABSA & Nedbank Credit Facility 1,000 69 plus 5.0%(2) 1.35%(2) 2021
------------------ ---------- ------------- -------------- ------------ -----------
SA prime
ZAR Working lending Subject
Capital rate minus to annual
ABSA & RMB facility 500 35 1% 0.85% renewal
------------------ ---------- ------------- -------------- ------------ -----------
Note 1: Converted to US$ using an exchange rate of ZAR14.40/US$1
Note 2: The ZAR Revolving Credit Facility will be subject to new
margin and commitment fee ratchet mechanisms contingent on the
Consolidated Net Debt: Consolidated EBITDA covenant levels at each
measurement date.
The reworked ratchet mechanism is as follows:
Consolidated Net Additional Additional commitment
Debt to Consolidated interest rate fee
EBITDA ratchet ratchet
<= to 2.5:1 0.0% 0.0%
--------------- ---------------------
> 2.5:1 but <=
3.0:1 +1.0% 0.0%
--------------- ---------------------
> 3.0:1 but <=
3.5:1 +2.0% +0.225%
--------------- ---------------------
> 3.5:1 but <=
4.0:1 +3.0% +0.450%
--------------- ---------------------
> 4.0:1 +4.0% +0.675%
--------------- ---------------------
The distribution covenants related to Petra's banking facilities
are unchanged. The Company's maintenance and distribution covenants
can be found at:
https://www.petradiamonds.com/investors/fixed-income-investors/banking-covenants/
Richard Duffy, Chief Executive Officer, commented:
"The agreement of our Lender group to amend the financial
covenant levels relating to our banking facilities demonstrates
their continued support of Petra's business and strategy, to
deliver consistent production from our diversified portfolio of
assets in order to drive free cash flow generation and reduce our
net debt."
Ends
For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Marianna Bowes investorrelations@petradiamonds.com
Salisha Ilyas
Buchanan Telephone: +44 20 7466 5000
(PR Adviser) pdl@buchanan.uk.com
Bobby Morse
Chris Judd
Ariadna Peretz
About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and
a consistent supplier of gem quality rough diamonds to the
international market. The Company has a diversified portfolio
incorporating interests in three underground producing mines in
South Africa (Finsch, Cullinan and Koffiefontein) and one open pit
producing mine in Tanzania (Williamson). Petra also conducts a
limited exploration programme in Botswana and South Africa, which
is currently under review.
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. 290 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.
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END
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