Petropavlovsk notifies bondholders of default, shares fall

By Jaime Llinares Taboada

 

Shares of Petropavlovsk PLC fell further on Friday after the company said it had sent event-of-default notices to the trustees of its 8.25% secured convertible bonds due 2024 and its 8.125% secured bonds maturing in 2022 following the acceleration of its lending with sanctioned Russian bank Gazprombank.

The London-listed gold miner said one or more events of default have occurred in the terms of its notes due 2022 and bonds due 2024 following Gazprombank’s demand for loan repayments from $288.1 million.

Earlier this month, Gazprombank demanded that Petropavlovsk repay $201.0 million owed under the term loan and $87.1 million owed under the revolving credit facilities.

Petropavlovsk did not say whether or not it defaulted on Gazprombank loans. A spokesperson told Dow Jones Newswires that Petropavlovsk is “in accelerated repayment” on Gazprombank loans.

Petropavlovsk cannot make payments to Gazprombank due to the lender’s inclusion on the UK sanctions list.

The miner said Friday that its lenders have not accelerated the $304 million secured notes or the $125 million convertible bonds at this time.

Shares at 12:16 GMT were down 14% at 1.98 pence. The stock price is down 90% since the start of the year.

 

Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT

 

This was corrected at 8:53 a.m. ET because Petropavlovsk was reported to have defaulted on Gazprombank loans. Petropavlovsk has sent notices of default to the trustees of its 8.25% secured convertible bonds due 2024 and its 8.125% secured bonds due 2022 due to a loan repayment request by lender Gazprombank.

(END) Dow Jones Newswire

April 29, 2022 06:45 ET (10:45 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

Comments are closed.