Amendment to Covenant Measurement

RNS Number : 2600Q

Petra Diamonds Limited

08 September 2017

 

This announcement contains inside information

8 September 2017

LSE: PDL

Petra Diamonds Limited

("Petra" or the "Company" or the "Group")

Amendment to Covenant Measurement for 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 waive the measurement of  the two maintenance covenant tests related to consolidated EBITDA for the 12 month period to, and as at, 30 June 2017.

The Lender Group has further agreed that the covenant tests relating to EBITDA for the 12 month measurement period to 31 December 2017 be amended as follows:

·     The interest cover ratio is changed to no less than 2.7x (previously 3.85x); and

·     The net debt to EBITDA ratio is changed to no more than 4.0: 1 (previously 2.80:1).

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/.

The Lender Group commented:

"The lenders remain fully supportive of Petra as the Company finalises its expansion plans and remains on track to reach its consistent stated target of 5.0 - 5.3 million carats per annum by FY 2019."

Johan Dippenaar, Chief Executive Officer, commented:

"The agreement of our Lender Group to waive the measurement of the 30 June 2017 EBITDA financial  covenants, coupled with the amending of the 31 December 2017 EBITDA financial covenant levels, continues to validate their support of Petra's business and our strategy as we  transition from a capital intensive / expansion phase to that of steady-state production. "

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For further information, please contact:

Petra Diamonds, London                                         Telephone: [phone]

Cathy Malins                                                               [e-mail] 

Buchanan                                                                  Telephone: [phone]

(PR Adviser)

Bobby Morse                                                               [e-mail]

Anna Michniewicz                                                       [e-mail]

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company has interests in five producing operations: three underground mines in South Africa (Finsch, Cullinan and Koffiefontein), the Kimberley Ekapa Mining joint venture (including the Kimberley Underground mine and extensive tailings retreatment operations) and one open pit mine in Tanzania (Williamson).  It also maintains an exploration programme in Botswana.

Petra has a core objective to steadily increase annual production to 5.0 - 5.3 million from FY 2019 onwards. The Group has a significant resource base in excess of 300 million carats.

Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. 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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