Petra Diamonds 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.
A new revolving credit facility (RCF) with Absa Bank 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, among other things, improved structure with a single R1 billion RCF replacing the existing amortising term loan (R856.1 million owed at 31 December 2021 net of unamortised transaction costs of R20.2million) and the R408.8 million RCF.
Petra recently settled the R402.2 million drawn under the existing RCF as of 31 December 2021 from available cash balances.
It said 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.
“The significant improvement in our facility reflects our stronger cash flow generation and improved balance sheet resulting from a robust diamond market and solid operational performance,” said company chief executive Richard Duffy.
The conclusion of the new facility is subject to the completion of appropriate definitive agreements, expected to be finalised during the third quarter to the fiscal year 2022.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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