Image credit: Petra Diamonds
Petra Diamonds has executed a lock-up agreement with an ad-hoc group of holders of the $650 million 7.25% senior secured second-lien notes.
The agreement formalises the agreement reached in principle regarding a long-term solution for the recapitalisation of the group.
"The execution of the lock-up agreement marks a positive step forward in the implementation of the Restructuring," it said.
"Pursuant to the terms of the lock-up agreement, the parties have undertaken to take all actions reasonably necessary in order to implement the restructuring and to not delay or prevent the implementation of the restructuring."
Key features of the restructuring include a partial reinstatement of the notes debt and the contribution by holders of the existing notes of $30 million in new money, each to take the form of new senior secured second-lien notes.
It is expected that the new notes will amount to about $337 million.
The restructuring will also see the conversion of the remainder of the notes debt into equity, which will result in the noteholders holding 91% of the enlarged share capital of Petra.
The implementation of the restructuring remains subject to the agreement of customary implementation documentation and the satisfaction of relevant conditions precedent.
Such conditions include approval of the company's shareholders and of the scheme by the noteholders and the sanctioning of the same by the court.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
