Photo by: Bloombeg
PERTH (miningweekly.com) – Uranium miner Paladin Energy on Monday announced a $81.4-million reduction in its total debt, following a one-off repayment, which was expected to provide combined savings of some $7-million.
The dual-listed miner had reduced its total debt to $362-million through a number of initiatives, including the repayment and termination of a $56.4-million Langer Heinrich syndicated facility agreement, and a repurchase of $25-million of its outstanding $237-million 6% convertible bonds, due in 2017.
The uranium miner noted that terminating the Langer Heinrich facility had a number of benefits, including the release of $28.2-million of cash, which had been restricted and held in a debt service reserve account to support the syndicated facility, and eliminating a relatively expensive and inflexible source of funding while also releasing the security arrangements, meaning this could be applied to a new working capital facility.
Subject to the approval of final terms and key consents, Paladin intended to put a $25-million 12-month revolving working capital facility in place at Langer Heinrich, to provide a buffer facility that could be drawn down in periods where the mine’s working capital requirements were in deficit, mainly owing to the timing of sales receipts.
One of the company’s existing lenders would provide the working capital facility, and the same lender had agreed to take over the Kayelekera environmental performance bond on an exclusive basis.
Meanwhile, Paladin had also repurchased $25-million of its 2017 convertible bonds for a cash price of $23.5-million, as the bonds were bought back at an average price of 92%.
The latest repurchase, along with an earlier repurchase of $37-million worth of bonds, had reduced the principal amount outstanding of the 2017 convertible bonds to $212-million.