By Rebecca Melvin
New York, Oct. 26 - Paladin Energy Ltd. priced $300 million five-year convertibles with a coupon of 3.625% and an initial conversion premium of 32.5%, according to a Wednesday news release.
The new Regulation S senior notes have an initial conversion price of $5.665 per share versus the reference share price of C$4.39 at Tuesday's close of trading on the Toronto Stock Exchange.
The reference price compares to $4.275 and A$4.391, based on exchange rates at the time of pricing.
The bonds will be non-callable until Nov. 18, 2013 and then provisionally callable subject to a price hurdle of 130% until maturity. The bonds mature Nov. 4, 2015.
Any amount of proceeds from the new issue not used for the tender for Paladin's $250 million of 4.5% convertibles due 2011 - which was launched concurrently with the new issue - will be dedicated to fund the company's proposed expansion of the Langer Heinrich Mine Paladin in part and for future growth opportunities.
Distribution is in some provinces in Canada with minimum subscription amounts of at least $200,000 principal via joint bookrunners and joint lead managers Barclays Capital and JPMorgan, with Societe Generale as a co-manager.
Settlement is seen Nov. 4, subject to customary approvals, including the approval of the Toronto Stock Exchange.
The 2011 convertibles being tendered are listed on the Singapore Exchange Trading Ltd. Paladin will pay $201,000 for each $200,000 in nominal amount of the 2011 convertibles, plus accrued interest, which is expected to be $4,125 for each $200,000 of bonds.
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 bonds
|
| Amount: | $300 million
|
| Maturity: | Nov. 4, 2015
|
| Bookrunners: | Barclays Capital and JPMorgan
|
| Co-manager: | Societe Generale
|
| Coupon: | 3.625%
|
| Price: | Par, $200,000
|
| Yield: | 3.625%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $5.665
|
| Calls: | Non-callable until Nov. 4, 2013, then provisionally callable at 130% price hurdle
|
| Pricing date: | Oct. 26
|
| Settlement date: | Nov. 4
|
| Stock listing: | Toronto: PDN
|
| Stock reference: | C$4.39
|
| Distribution: | Regulation S and short form prospectus in Canada
|
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