Petra Diamonds launches $25m rights offer

PETRA Diamonds today launched its previously announced £18.8m ($25m) rights offer which forms a key part of steps aimed at keeping the company afloat amid a major slump in diamond prices.The UK-listed miner said about 114.2 million shares will be issued at 16.5 pence apiece. The rights offer is under-written by so-called ‘backstop shareholders’ representing investors who lent the company money.In addition to the rights offer, Petra said in August it would also extend R1.75bn in senior long-term debt to December 2029 while increasing interest payable and amortising R750m of the sum by June 2029. The debt was to have matured in January.In addition, the repayment of loan notes valued at $225m as of December 31 and due in March has been extended to December 2030. Shareholders have agreed to a lock-up, effectively a moratorium on converting the notes until the new expiry date.“Today marks the final leg of Petra’s refinancing with the launch of the rights issue and the consent solicitation process to amend and extend the notes,” said Vivek Gadodia, interim joint CEO in a statement.Gadodia said the company “has undergone immense change over the past 18 months” which had “enabled us to refinance our debt”Despite previous streaming efforts undertaken last year and earlier this year, Petra failed to to generate cash flow. During the third quarter Petra reported an increase in net debt to $258m compared to $215m at the interim stage.Shares in Petra Diamonds have fallen about 39% year-to-date and are 47% lower in the last 12 months. The company, valued at £34m , is currently trading at 19.3p/share.The post Petra Diamonds launches $25m rights offer appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com