REG-Petra Diamonds: New First Lien Banking Facility on more favourable terms

Petra DiamondsAnnouncement

02/02/2022 07:05

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



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