Petra Diamonds Sees 43% Share Surge on Refinancing Deal

Petra Diamonds' shares rose 43% after announcing a refinancing deal with a long-term package, extending its senior secured bank debt maturity to December 2029 and 9.75% senior secured second lien notes to March 2030. The deal includes a $25 million rights issue and support from existing shareholders and noteholders. The refinancing aims to preserve cash and allow the company to continue with extension projects at its remaining mines.

Petra Diamonds Limited (LSE: PDL) announced a significant refinancing deal, which has led to a 43% increase in its share price. The company has proposed a long-term refinancing package that includes extending the maturity dates of its senior secured bank debt and 9.75% senior secured second lien notes, along with a $25 million rights issue. The refinancing aims to preserve cash and support the company's ongoing extension projects at its remaining mines.

The proposed refinancing extends the maturity date of the senior secured bank debt from January 2026 to December 2029 and the 9.75% senior secured second lien notes from March 2026 to March 2030. Additionally, Petra Diamonds has agreed to a $25 million rights issue at 16.5 pence per share, underwritten by certain existing shareholders. This rights issue is expected to generate approximately $25 million in gross proceeds.

The refinancing plan is subject to shareholder approval. The company's interim joint Chief Executive Officers, Vivek Gadodia and Juan Kemp, commented that the refinancing discussions have been focused on preserving cash in the business while addressing the need to complete extension projects at the Cullinan Mine and Finsch Mine. These projects are crucial for unlocking long-term value for the company.

Petra Diamonds has reported mixed financial results for the 2025 financial year. The company's diamond sales revenue fell 33% to USD206 million from USD309 million, despite growing 19% in the fourth quarter to USD50 million. Total diamonds sold over the year declined 18% to 2.4 million carats from 2.9 million carats. However, the company's first tender for the 2026 financial year already garnered USD25 million in revenue from the sale of 245,000 carats, showing market improvements in like-for-like prices for rough diamonds.

The proposed refinancing deal is a significant step for Petra Diamonds as it aims to secure its financial future and support its ongoing expansion projects. The company's shares have responded positively to the news, indicating investor confidence in the proposed refinancing plan.

References:
[1] https://uk.finance.yahoo.com/news/petra-diamonds-ltd-proposed-refinancing-060100325.html
[2] https://www.proactiveinvestors.com.au/companies/news/1076330/petra-diamonds-agrees-refinancing-as-turnaround-continues-1076330.html
[3] https://www.miningweekly.com/article/petra-announces-notes-debt-refinancing-and-lower-yearly-revenue-2025-08-08
[4] https://www.marketscreener.com/news/petra-diamonds-shares-rise-on-proposed-refinancing-plan-ce7c5eddd88eff25