Photo by: Bloomberg
PERTH (miningweekly.com) – Uranium miner Paladin Energy has successfully raised $100-million through convertible bonds, with the company maintaining the right to issue a further $50-million of senior, unsecured convertible bonds within the next 30 days.
The senior unsecured convertible bonds, which were due in 2020, were issued to institutional, professional and sophisticated investors.
The proceeds of the bonds issue, along with the existing cash balance, would be used to fund Paladin’s current tender offer to acquire any or all of its $300-million convertible bonds due in November this year.
The additional amount of up to $50-million, if raised, would be used for additional funding flexibility.
“The successful completion of this raising, along with the current tender offer for the 2015 convertible bonds, eliminates all of the near-term financing risk and both reduces and extends the company’s debt maturity profile,” Paladin CEO and MD John Borshoff said on Friday.
“This significant de-risking of the balance sheet, along with the expected recovery in uranium prices, ensures Paladin remains well positioned to capitalise on its unique standing in the uranium market.”
The convertible bonds carry a coupon of 7% a year payable twice a year in arrears, and are convertible into Paladin shares at an initial conversion rate of 35.6c a share, representing a conversion premium of around 25% above the price of Paladin shares at the time of pricing.
Borshoff said on Friday that Paladin remained fully committed to realising value for shareholders. He stated that the firm’s recently completed initiatives had provided the company a strong base from which to continue negotiations with current and potential strategic partners on other initiatives, which would provide further funding flexibility and help fast-track both consolidation and the development of the company’s asset pipeline.