November 30, 2016 / 8:05 AM / in a year

BRIEF-Petropavlovsk agrees debt refinancing with Sberbank, VTB

Nov 30 (Reuters) - Russian miner Petropavlovsk Plc says:

* Has received approvals for the refinancing of its entire bank debt totalling $529.8 million with the lending banks, Sberbank (75 percent of total bank debt) and VTB (25 percent of total bank debt);

* 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 8 percent;

* The extended maturity profile of borrowings is now successfully aligned with Petropavlovsk’s production profile, expected cash generation and growth capital expenditure plans;

* The lenders have agreed the schedule supporting the company’s development of the Pressure Oxidation Project (POX Hub);

* The proposed refinancing allows Petropavlovsk to self-fund the POX Hub out of free cash flow;

* Petropavlovsk is no longer pursuing the proposed joint-venture process with GMD Gold but remains in constructive discussions with it whether an alternative agreement can be reached;

* The schedule of works for the development of the POX Hub is currently projected for the commissioning by the end of 2018. Source text for Eikon: Further company coverage: (Reporting by Moscow Newsroom)

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