Petra Diamonds eyes $600m notes issue, debt restructure

Petra Diamonds has announced the launch of a $600m notes issue and restructuring of its debt facilities.

It intended to offer $600m in aggregate principal amount of senior secured second lien notes due 2022. The notes would be issued by Petra Diamonds US$ Treasury, a subsidiary of Petra Diamonds Ltd.

Proceeds would be used to refinance the company’s existing $300m 8.25% senior secured second lien notes due 2020, to repay all drawn bank facilities, and for general corporate purposes.

At the same time, Petra said it intended to enter into new bank facilities to provide additional liquidity to the company. It said these facilities would remain undrawn upon closing of the offering of the 2022 notes.

“The new capital structure will provide the group with additional financial flexibility as a result of an extended debt maturity profile and increased liquidity position,” it said in a statement.

Petra added that the terms of the 2022 notes would be determined at the time of pricing of the offering, subject to market conditions.

CEO Johan Dippenaar said the group’s new capital structure provided Petra with financial flexibility, with no drawn debt maturities until 2022.

“This represents a further step forward in the next phase of the company’s development as the eight-year capital expenditure programme at the group’s flagship Finsch and Cullinan mines nears completion.”

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