May 1, 2020 / 7:12 AM / a month ago

Petra Diamonds withholds interest payment as creditors circle

May 1 (Reuters) - Africa-focussed Petra Diamonds said on Friday it would hold off on making an interest payment on bonds due on May 1 and make use of a 30-day grace period to find a resolution with creditors that allows it to draw down other new borrowing.

Interest payments, payable semi-annually, are needed on May 1 and Nov. 1 for Petra’s outstanding $650 million, 7.25% Senior Secured Second Lien Notes due 2022.

The company said the terms of a short-term credit facility it is negotiating with its South African banking backers are likely to specify that it must not make the payments. (Reporting by Shanima A in Bengaluru; editing by Patrick Graham)

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