Paladin Energy plans $100 million five-year convertibles to yield 6.5%-7%, up 25%-30%

By Rebecca Melvin

New York, Feb. 11 – Paladin Energy Ltd. launched a $100 million offering of five-year convertible bonds with a $250,000 par that were being talked to yield 6.5% to 7% with an initial conversion premium of 25% to 30%, according to a market source.

The convertible deal has a $50 million greenshoe and was being sold via bookunner J.P. Morgan Securities plc, with co-managers Nedbank Capital and the Standard Bank of South Africa Ltd.

The bonds are non-callable for three years and then provisionally callable if shares exceed 130% of the conversion price.

Proceeds will be used to fund a concurrent tender for Paladin’s existing $300 million of 3.625% convertible bonds due 2015, with remaining proceeds for general corporate purposes.

Shares closed on the Australian stock exchange at A$0.37. Paladin is applying to list the convertibles on the Singapore stock exchange.

Paladin is a uranium exploration company based in Subiaco, Australia.

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