Petra Diamonds Limited (LSE:PDL, OTC:PDLMF) has launched a fully underwritten 10-for-17 rights issue to raise around £18.8 million, marking the final step of its long-term refinancing strategy.
Proceeds will support general working capital as the group extends the maturity of its senior bank debt to December 2029 and its 9.75% senior secured notes to March 2030, more than 99% of noteholders have agreed to the proposed amendments under a consent solicitation process, Petra said.
The rights issue, priced at 16.5 pence per share, is fully underwritten by existing backstop shareholders who have also provided voting undertakings covering roughly 74% of the company’s stock.
"This substantially strengthens our capital structure and allows us to focus on delivering on our business plan," said Petra joint chief executive Vivek Gadodia.
Gadodia added: "Petra has undergone immense change over the past 18 months in order to become a streamlined business that is now positioned to deliver sustained value for its stakeholders."
"This has enabled us to refinance our debt with a fit-for-purpose solution that allows capital execution while providing the headroom and flexibility to weather the current market conditions."