Herbert Smith Freehills Kramer advises Petra Diamonds on its refinancing package and rights issue

Leading global law firm Herbert Smith Freehills Kramer has advised London-listed South African mining group Petra Diamonds on its plan to refinance its debt, which will see the company extend its debt maturities through a voluntary consent solicitation process.

The refinancing proposal involves extending Petra Diamonds’ US$99 million revolving credit facility from January 2026 to December 2029 and extending the maturity of its US$228 million senior secured second lien notes from March 2026 to March 2030, alongside concurrent amendments to the notes, including the introduction of a “payment in cash or equity” mechanism.

Petra Diamonds will also pursue a rights issue of approximately £18.8 million (US$25.1 million), fully underwritten and committed by certain existing shareholders.

The Herbert Smith Freehills Kramer team was led by partners Mark Bardell, Gabrielle Wong, Sarah Ries-Coward, Kevin Pullen and Shaun Williamson, supported by senior associates Felipe Lima, Owen Roberts and Rory White-Andrews, and associates Robert Candeland, Shareka Logendran, Meenakshi Kurpad, Rhys Williams, Katerina Jovanovska, Bilal Ahmadzai, Jack Aynsley and Jhanelle Bisasor.

Partner Mark Bardell commented: “We are pleased to have advised Petra Diamonds on its refinancing plan, a multi-faceted deal which showcases our cross-practice capabilities, drawing on our corporate, finance and restructuring offerings, and deep knowledge of the Mining sector.”

Petra Diamonds shareholders approved the resolutions for the refinancing plans and the rights issue at a special general meeting on 6 November.