Business
Extension of US$20 million Co
Extension of US$20 million Co.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n RNS Number : 2732Z Petra Diamonds Ld 18 September 2009 \n \n \n\n\n\n\n\n\n\n\nImmediate Release\n\n\n18 September 2009\n\n\n\n\n\n\nPetra Diamonds Limited\n\nExtension of US$20 million Convertible Bond \n\nPetra Diamonds Limited ('Petra' or 'the Company'), the international diamond mining group, announces that the maturity date of the US$20 million convertible bond that was issued to Al Rajhi Holdings W.L.L. ('Al Rajhi') on 18 September 2006 ('the 2006 Convertible') has been extended until 18 March 2011 on the amended terms highlighted below ('the 2009 Convertible').\n\nPetra continues to closely manage its cash position and will provide a full update on current trading and its financial position at the end of September when it announces results for the year to 30 June 2009.\n\n\nHighlights\n\n\n\nFor the period from 19 September 2009 to 18 December 2009 only, a coupon of 9.5% per annum (payable in cash, calculated to the earlier of 18 December 2009, conversion by Al Rajhi or repayment by Petra) will be applied on the US$20 million principal bond amount.\n\n\n\n\n\nDuring the period from 19 September 2009 to 18 December 2009 the US$20 million principal may be converted, at Al Rajhi's election, into Petra shares at a strike price of 85 pence per share.\n\n\n\n\n\nIf Petra does not repay the US$20 million principal by 18 December 2009 and Al Rajhi does not convert at the 85 pence per share as noted above, then the US$20 million convertible bond will be automatically extended and the terms from 19 December will be:\n\n\na) the 2009 Convertible will be extended for an additional 15 month period, from 18 December 2009 until 18 March 2011 (therefore the total extension will be 18 months). During this 15 month period the Convertible will carry no coupon;\n \nb) the strike price from 18 December 2009 will be 65 pence per share; and\n \nc) Petra will grant to Al Rajhi warrants over six million shares, exercisable at 65 pence per share and exercisable until 18 March 2011 (“the 2009 ...