Covenants are not forever as De Beers asks for waiver
De Beers has asked its banks for a covenants waiver amid a slump in sales of diamonds that led the company to slash production by 91% in the first quarter of the year.
The borrower, which launched the amendment this week, is seeking to waive covenant tests on a $3bn revolver in the first phase of a wider debt restructuring process.
The borrower wants to delay covenants tests on the loan from the end of June until September, by when it expects to have completed the wider restructuring.
The waiver is being co-ordinated by active leads Barclays Capital and Royal Bank of Scotland, and also by Lloyds Banking Group, Scotia
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