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Banking Covenants

These covenants relate to Petra's banking facilities

The following ratios are measured twice annually, on a rolling twelve month period at 30 June and 31 December, respectively. On 19 February 2018, Petra announced that its lender group had agreed to waive the measurement of the two maintenance covenant tests related to consolidated EBITDA for the 12 month period to 31 December 2017, coupled with a reset of the 30 June 2018 and 31 December 2018 EBITDA related covenants.

Maintenance Covenants 31 Dec 2017 30 Jun 2018 31 Dec 2018 30 Jun 2019 onwards
Consolidated Net Debt2 to Consolidated EBITDA n/a1 ≤3.50x ≤3.50x ≤2.50x
Consolidated EBITDA to Consolidated Net Finance Charges n/a1 ≥3.00x ≥3.00x ≥4.00x
Consolidated Net Senior Debt3 to Book Equity4 ≤0.40x ≤0.40x ≤0.40x ≤0.40x
Distribution Covenants 31 Dec 2017 30 Jun 2018 onwards 31 Dec 2018 onwards
Consolidated Net Debt1 to Consolidated EBITDA ≤2.00x ≤2.00x 2.00:1
Consolidated EBITDA to Consolidated Net Finance Charges ≥6.00x ≥6.00x 6.00:1
Consolidated Net Senior Debt2 to Book Equity3 ≤0.30x ≤0.30x 0.30:1
  1. Waiver obtained for 31 December 2017 measurement period
  2. Consolidated net debt is loans and borrowings, less cash, less diamond debtors; consolidated net debt includes the BEE guarantees of ZAR1.37 billion (ca. US$111 million) as at 31 December 2017, issued by Petra to the lenders as part of the BEE financing concluded in December2014
  3. Consolidated Net Senior Debt means at any time the Consolidated Gross Debt (excluding any second lien and other subordinated debt.
  4. Book Equity is Equity excluding accounting reserves