TIDMPOG
RNS Number : 5145Q
Petropavlovsk PLC
30 November 2016
Petropavlovsk PLC
$530 million Refinancing Approved
Petropavlovsk PLC ("Petropavlovsk" or the "Company" or, together
with its subsidiaries, the "Group") is delighted to announce the
following:
Refinancing Highlights
-- The Company has received approvals for the refinancing of the
Group's entire bank debt totaling US$529.8 million with the lending
banks, Sberbank (75% of total bank debt) and VTB (25% of total bank
debt) (the "Lenders"). Terms are subject to final documentation and
completion of conditions precedent.
-- The approved terms include a revised maturity profile from
May 2018 to September 2022 (inclusive of option to extend the 2019
maturity payment to 2022 upon certain conditions being satisfied)
and effective average interest rate of c.8%.
-- The extended maturity profile of borrowings is now
successfully aligned with the Company's production profile,
expected cash generation and growth capital expenditure plans.
-- Following the completion of an independent technical report
the Lenders have agreed the schedule supporting the Company's
development of the Pressure Oxidation Project ("POX Hub").
-- On the basis of the highly positive economics projected, the
proposed refinancing allows the Group to self-fund the POX Hub out
of free cash flow.
-- The Company announces that it is no longer pursuing the
proposed joint-venture process with GMD Gold but remains in
constructive discussions with GMD Gold to establish whether an
alternative agreement can be reached for the mutual benefit of both
parties.
-- The schedule of works for the development of the POX Hub is
currently projected for the commissioning by the end of 2018.
Commenting, Peter Hambro, Chairman said:
"I am delighted to report that the relevant internal approvals
of Sberbank and VTB have separately been received. Both lenders
have been extremely supportive and the Group can now look forward
to a stronger and more secure financial future.
Significant extension of maturity profile allows the Company to
pursue its strategic goals and objectives and demonstrates that the
Lenders share our view of the strategic importance and value of the
POX Hub. We value our relationship with GMD Gold and are continuing
discussions with them to explore whether there is an alternative
arrangement that will benefit both parties."
Refinancing Approved Terms
Senior Secured Term Loan Facility
Sberbank and VTB, the Group's lenders, have received formal
internal approvals for the refinancing of US$395 and US$135 million
bank facilities, respectively.
All terms are subject to final documentation and completion of
conditions precedent.
The proposed Sberbank and VTB terms provide for a following
revised repayment schedule (including option to extend from 2019 to
2022): 2017 US$40.6 mln, 2018 US$55.5 mln, 2019 US$122 mln, 2020
US$93.5 mln, 2021 US$124.7 mln, 2022 US$93.5 mln.
This aligns the Group's debt maturities with the Company's
production profile, expected cash generation and growth capital
expenditure plans.
An option to extend is subject to the following conditions being
satisfied:
-- Operational completion of the POX plant in 2019;
-- Total Consolidated Net Debt to EBITDA ratio for 12 months
ending on June 30, 2019 less than or equal to 2.5:1;
-- Evidence of funds and/or confirmation that convertible bonds
due 2020 will be repaid in full by means of conversion into
Petropavlovsk equity or the maturity is extended and subordinated
to the banks loans new repayment schedule (after extension)
"This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014."
About
Petropavlovsk PLC
Petropavlovsk is one of Russia's leading gold mining companies.
We operate some of the largest gold mines in Russia in terms of
their gold production output, processing capacity and resource
base. Furthermore, our assets have untapped exploration potential.
We are a leading employer and contributor to the development of the
local economy in the Amur region, Russian Far East, where we have
operated since 1994. As at 31 December 2015, we have produced
approximately 6Moz of gold.
The Company is listed on the Main Market of the London Stock
Exchange (Ticker POG:LN)
Sberbank
Sberbank is Russia's largest bank and a leading global financial
institution. Sberbank holds almost one third of aggregate Russian
banking sector assets, it is the key lender to the national economy
and the biggest deposit taker in Russia. The Central Bank of the
Russian Federation is the founder and principal shareholder of
Sberbank owning 50% of the Bank's authorized capital plus one
voting share, with the remaining 50% held by domestic and
international investors. Sberbank has more than 135 million
individual customers and more than 4 million corporate clients in
20 countries. Sberbank has the largest distribution network in
Russia with almost 17,000 branches, and its international
operations include UK, US, CIS, Central and Eastern Europe, India,
China, Turkey and other countries.
The Bank holds the general banking license No.1481 issued by the
Bank of Russia. Official websites of the Bank: (Sberbank Group
website)
Sberbank CIB
Sberbank CIB is the corporate and investment banking business of
Sberbank. Its key areas of activity are corporate finance
(including trade finance), the documentary business2, investment
banking services, trade operations with securities, and private
equity. Sberbank's corporate and investment banking business
provides integrated financial solutions and investment advisory
services to its clients, which include major corporations,
financial institutions, sovereign states and federal and
sub-federal government bodies and organisations.
Sberbank CIB is one of the largest operators on the Russian
precious metals market; providing a full suite of solutions for
corporate clients and financial institutions across the precious
metals spectrum and around the world.
VTB Group
VTB Group is a global provider of financial services, comprised
of over 20 credit institutions and financial companies operating
across all key areas of the financial markets. VTB Group is a
holding company with one strategically aligned development model,
including a common brand, centralised financial and risk
management, and integrated compliance systems. VTB Group's global
network is unique to the Russian banking industry. It enables the
group to facilitate international partnerships and promote Russian
companies aiming to engage with global markets.
VTB Group operates a large international network across CIS
countries; Armenia, Ukraine, Belarus, Kazakhstan and Azerbaijan.
VTB also has banks in Austria, Germany and France which are part of
a European sub-holding with VTB Bank (Austria) acting as the parent
bank for Germany and France. The Group also has subsidiary and
affiliated banks in the United Kingdom, Cyprus, Serbia, Georgia and
Angola and branches in China and India and VTB Capital has branches
in Singapore and Dubai. The majority shareholder of the VTB Bank is
the Russian Government, which owns 60.9 percent of the voting
shares.
ENQUIRIES
Petropavlovsk PLC
+44 (0) 20 7201
Alya Samokhvalova 8900
Alexandra Carse
Maitland
Neil Bennett +44 (0) 20 7379
James Isola 5151
Note: Figures throughout this release may not add up due to
rounding.
Forward-looking statements
This release may include statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These
forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout this
release and include, but are not limited to, statements regarding
the Group's intentions, beliefs or current expectations concerning,
among other things, the Group's results of operations, financial
position, liquidity, prospects, growth, strategies and expectations
of the industry.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances.
Forward-looking statements are not guarantees of future performance
and the development of the markets and the industry in which the
Group operates may differ materially from those described in, or
suggested by, any forward-looking statements contained in this
release. In addition, even if the development of the markets and
the industry in which the Group operates are consistent with the
forward-looking statements contained in this release, those
developments may not be indicative of developments in subsequent
periods. A number of factors could cause developments to differ
materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and
business conditions, industry trends, competition, commodity
prices, changes in law or regulation, currency fluctuations
(including the US dollar and Rouble), the Group's ability to
recover its reserves or develop new reserves, changes in its
business strategy, political and economic uncertainty. Save as
required by the Listing and Disclosure and Transparency Rules, the
Company is under no obligation to update the information contained
in this release.
Past performance cannot be relied on as a guide to future
performance.
The content of websites referred to in this announcement does
not form part of this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCKMMFMVGVGVZG
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November 30, 2016 02:04 ET (07:04 GMT)
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