Petra Diamonds to pay down bank borrowings with notes proceeds

By Sara Rosenberg

New York, April 24 – Petra Diamonds plans on repaying debt under existing senior secured term loans and credit facilities using proceeds from a $300 million senior secured second-lien notes offering, according to a market source.

Remaining proceeds will be used for general corporate purposes, including funding a new plant at the Cullinan mine.

In addition, with the notes issuance, the company intends to amend its existing credit facilities to increase the amount available under the facilities and extend their maturities.

It is expected that the amended facilities will provide for an aggregate of $60 million in U.S. dollar facilities and ZAR 3.2 billion ($277 million) indirectly in rand facilities.

Petra Diamonds is a diamond mining group with a controlling interest in a diversified portfolio of five producing diamond mines.

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