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Petropavlovsk announces 'successful' pricing of loan notes due in 2022

Petropavlovsk said the successful pricing of the loan notes issue demonstrates the market's confidence in its projects
The gold producer said the issue provides 'operational and financial flexibility'

Petropavlovsk PLC (LON:POG) has announced that its subsidiary Petropavlovsk 2016 has set the issue price of its US$500mln loan notes at 100%, allowing the company to refinance its debt.

The notes have an 8.125% interest due on 14 November 2022. The interest will be payable semi-annually in arrears on May 14 and November 14 each year, beginning in May next year.

READ: Petropavlovsk reiterates full year gold production guidance

The gold producer said they will be issued on or around November 14 and it intends to use the net proceeds of the offering to refinance loans provided by Sberbank and VTB Bank. 

Chairman Ian Ashby said: "The successful pricing of the issue demonstrates the market's confidence in our development projects and completion will significantly improve the capital profile of the group."

READ: Petropavlovsk appoints Sergey Ermolenko as acting chief executive officer, replacing Pavel Maslovskiy...

Chief executive Andrey Maruta said:  "As the proceeds of the offering will be used to refinance the bank debt, this transaction will allow us to extend the company's debt maturity profile and to optimise the amortisation schedule, thus providing operational and financial flexibility."


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