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PERTH (miningweekly.com) – Uranium miner Paladin Energy has bought back $20-million of its outstanding $275-million convertible bonds, due in 2017.
The bonds were bought back at an average price of 90.2c each for a total cash expenditure of $18.5-million and provided Paladin with $3.9-million in cash savings in the form of avoided principal and coupon payments over the period to the maturity of the convertible notes.
The company said on Tuesday that the repurchase was undertaken to take advantage of recent trading conditions, which resulted in the 2017 convertible bonds trading at a discount to their face value. Owing to the opportunistic nature of the initiative, the impact of the purchase was not included in the 2016 guidance.
The transaction would likely be settled on September 9, at which time the repurchased convertible bonds would be cancelled.
The uranium miner noted that the repurchase was funded from internal cash resources.