Petropavlovsk completes refinancing of $310.5 mln in bonds
MOSCOW. March 19 (Interfax) - Gold producer Petropavlovsk has finished refinancing convertible bonds worth $310.5 million on which the company could have default, Petropavlovsk said in a statement.
The company has issued 3,102,923,272 new shares and $100 million in new five-year convertible bonds.
During the first stage, when shareholders participated in a rights issue, the company placed 35.35% of shares. The shares, according to an agreement with bond holders were placed at 5 pence each, meaning Petropavlovsk received around $81 million. Existing shareholder had preemptive right to buy shares, and they were able to sell this right through the LSE to third-party investors.
In addition, the investment company CapeView Capital received 5.36% Petropavlovsk, the company said. CapeView was a holder of Petropavlovsk's corporate bonds, the company told Interfax.
The gold producer announced later on Thursday that another investment company, Sothic Capital, had increased its stake to 10.64%. Petropavlovsk told Interfax that this concerned a bond holder.