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 8 September 2017, 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 30 June 2017.

Maintenance Covenants 30 Jun 2017 31 Dec 2017 30 Jun 2018 onwards
Consolidated Net Debt1 to Consolidated EBITDA n/a 4.00:1 2.50:1
Consolidated EBITDA to Consolidated Net Finance Charges n/a 2.70:1 4.00:1
Consolidated Net Senior Debt2 to Book Equity3 n/a 0.4:1 0.4:1

Distribution Covenants 30 Jun 2017 31 Dec 2017 30 Jun 2018 onwards
Consolidated Net Debt1 to Consolidated EBITDA 2.00:1 2.00:1 2.00:1
Consolidated EBITDA to Consolidated Net Finance Charges 6.00:1 6.00:1 6.00:1
Consolidated Net Senior Debt2 to Book Equity3 0.3:1 0.3:1 0.3:1

  1. Consolidated net debt is loans and borrowings, less cash, less diamond debtors; consolidated net debt includes the BEE guarantees of ca. ZAR1.37 billion (US$105 million) as at 30 June 2017, issued by Petra to the lenders as part of the BEE financing concluded in December 2014
  2. Consolidated Net Senior Debt means at any time the Consolidated Gross Debt (excluding any second lien and other subordinated debt)
  3. Book Equity is Equity excluding accounting reserves