Petra Diamonds secures 99% noteholder support for refinancing plan

LONDON - Petra Diamonds Limited (LSE:PDL) announced Friday that it has secured support from noteholders representing more than 99% of its outstanding notes for its proposed refinancing plan, exceeding the 90% threshold required for implementation via consent solicitation.

The diamond mining company now plans to extend the maturity date of its notes through a consent solicitation rather than a scheme of arrangement, according to a press release statement. The consent solicitation is expected to launch on or shortly after the publication of the company’s financial results for fiscal year 2025.

Petra also reported that four additional shareholders have joined the equity backstop agreement, bringing the total representation to approximately 69% of the company’s existing issued share capital. The new backstop providers include interim joint Chief Executive Officers Vivek Gadodia and Juan Kemp, who joined in their personal capacities.

JOSIVAR Sarl, an entity wholly-owned by Petra’s Chair José Manuel Vargas, has committed to underwrite up to approximately $2.45 million of entitlements not taken up by other shareholders. Following these developments, shareholders representing approximately 74% of Petra’s existing issued share capital are now committed to vote in favor of the requisite resolutions to implement the rights issue and refinancing.

The company has engaged Kroll Issuer Services Limited as information agent for the lock-up agreement, providing a channel for noteholders who wish to support the refinancing.

Petra Diamonds is targeting completion of the refinancing in the fourth quarter of 2025, which will require publication of a prospectus and shareholder circular expected in the same quarter. The company noted that completion remains subject to various conditions, approvals, and documentation requirements.

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