https://www.engineeringnews.co.za

Petra agrees new first lien banking facility on more favourable terms

2nd February 2022

By: Tasneem Bulbulia

Deputy Editor Online

     

Font size: - +

Diamond miner 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.

The conclusion of the new facility is subject to the completion of appropriate definitive agreements, which are expected to be finalised during the third quarter of its 2022 financial year.

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 company notes.

“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,” comments CE Richard Duffy.

A new revolving credit facility (RCF) with Absa Bank, acting through its corporate and investment banking divisions, 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, besides others, an improved structure, with a single R1-billion RCF replacing the existing amortising term loan and the R408.8-million RCF.

During January, Petra settled the R402.2-million drawn under the existing RCF from available cash balances.

The terms also include a more appropriate covenant package resulting in improved headroom and flexibility on the balance sheet; an extended tenure for the RCF with a maturity date of December 2025; a more usual bullet payment at maturity; and reduced financing costs, with improved margin and commitment fees.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Alco-Safe
Alco-Safe

Developed to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.

VISIT SHOWROOM 
Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.064 0.882s - 140pq - 2rq
Subscribe Now