By Rebecca Melvin
New York, April 23 - Paladin Energy Ltd. priced an upsized $274 million of five year convertible senior bonds on Monday at par of $200,000 to yield 6% with an initial conversion premium of 25%, according to a company news release.
The deal was initially expected to be $225 million in size with an upsize option of up to $275 million.
The Regulation S offering was made in Canada via joint bookrunners Barclays Bank plc, Royal Bank of Canada and UBS AG, Australia Branch. Barclays was the global coordinator.
The initial conversion price is $2.19 per share.
The bonds are non-callable until May 14, 2015 and then provisionally callable subject to shares, translated into U.S. dollars, trading at 130% of the conversion price.
Proceeds will be used to fund Paladin's concurrent tender offer for up to $200 million of its $325 million outstanding 2013 convertibles and for strengthening its balance sheet as well as for future growth opportunities.
Paladin is a uranium exploration company based in Subiaco, Australia.
| Issuer: | Paladin Energy Ltd.
|
| Issue: | Convertible senior bonds
|
| Bookrunners: | Barclays Bank plc, Royal Bank of Canada, UBS AG, Australia Branch
|
| Amount | $274 million, upsized from $225 million
|
| Maturity: | April 30, 2017
|
| Coupon: | 6%
|
| Price: | Par, $200,000
|
| Yield: | 6%
|
| Conversion premium: | 25%
|
| Conversion price: | $2.19
|
| Call: | Non-callable until May 14, 2015, then provisionally callable at a 130% hurdle
|
| Contingent conversion: | Yes
|
| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Distribution: | Regulation S
|
| Stock listing: | Toronto: PDN
|
| Stock reference price: | C$1.739, TSX close April 20 ($1.752/A$1.69)
|
| Market capitalization: | C$1.33 billion
|
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