Petropavlovsk identifies holders in advance of refinancing $310 million 4% bonds due February

By Lisa Kerner

Charlotte, N.C., Aug. 28 – Petropavlovsk plc chairman Peter Hambro said the company has spent the last six months working on plans to repay $310 million of its 4% convertible bonds due Feb. 15.

Despite the “time-consuming” and “laborious” process, contact has been made with “a large portion” of the bondholders, opening up “a meaningful dialogue,” according to Hambro.

Petropavlovsk has a achieved a position regarding the debt where it expects to make “a material move forward” in the near future.

Hambro made his comments during the company’s conference call to discuss its first half results on Thursday.

Hambro declined to provide specifics about repayment or refinancing plans during his prepared remarks. However, he did say during the question-and-answer period that progress has been made with the company’s senior lenders regarding relaxation of certain covenants by year-end.

The company reduced its net debt by 3% since Dec. 31, 2013 to $924 million and by 23% from a peak of $1.2 billion at the end of the first quarter of 2013, according to the earnings presentation.

Petropavlovsk is targeting net debt at year-end of $850 million, not including any effects from implementation of a refinancing plan.

Cash at June 30 was about $64 million.

Petropavlovsk, formerly Peter Hambro Mining plc, is a London-based gold mining company that operates in Russia.

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