By Rebecca Melvin
New York, Feb. 20 - Australian uranium producer Paladin Energy Ltd. priced $325 million of five-year convertible bonds Wednesday to yield 5% with an initial conversion premium of 25%, company and market sources said.
The senior unsecured bonds priced at the cheap end of talk, which was for a coupon of 4.5% to 5% and an initial conversion premium of 25% to 30%.
Joint bookrunners were Citigroup Global Markets Ltd. and UBS AG, Australia Global, with UBS acting as global coordinator.
Initially the deal was planned for $275 million, with a $50 million greenshoe. But the greenshoe has already been exercised.
The notes are callable from April 1, 2011 subject to a 130% hurdle.
The company intends to list the bonds on the Singapore Stock Exchange.
Proceeds are intended to fund growth, including expansion and potential acquisitions.
Paladin is a pure play on uranium. After 20 years of depressed conditions in the nuclear industry, a vacuum has developed in uranium supply, creating a significant opportunity for Paladin, according to a company release.
A breakdown on the use of proceeds is: $50 million for its Langer Heinrich expansion project; $100 million to $120 million to fund mining development, expansions and to support ongoing M&A activities in the next 12 months to 18 months; about $50 million to $70 million for exploration and business development; about $65 million to $75 million on marketing, including opening marketing offices in Europe and the Asia-Pacific, and adding contract and sales administration personnel in its head office and North America; and about $10 million to fund costs associated with the issue.
Based in Perth, Western Australia, Paladin is a uranium exploration company with projects in Australia and Africa. Its shares are listed on both the Australian and Toronto stock exchanges.
| Issuer: | Paladin Energy Ltd.
|
| Issue: | Convertible senior unsecured notes
|
| Amount: | $325 million, including $50 million greenshoe
|
| Maturity: | March 11, 2013
|
| Bookrunners: | Citigroup Global Markets and UBS AG, Australia Branch
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Conversion premium: | 25%
|
| Conversion price: | $6.59, based on a fixed exchange rate of US$0.9151=A$1.00
|
| Call: | From April 1, 2011, subject to 130% hurdle
|
| Dividend protection: | Yes
|
| Change-of-control protection: | Yes
|
| Pricing date: | Feb. 20
|
| Settlement date: | March 11
|
| Distribution: | Regulation S
|
| Rating: | Unrated
|
| Price talk: | 4.5% to 5% yield, up 25% to 30%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
