By Rebecca Melvin
New York, Feb. 13 – Paladin Energy Ltd. priced $100 million of five-year convertible bonds with a $250,000 par to yield 7% with an initial conversion premium of 25%, according to a news release.
The Regulation S deal priced at the cheap end of talked terms, which were for a 6.5% to 7% coupon and a 25% to 30% premium.
The deal has a $50 million greenshoe and was sold via bookunner J.P. Morgan Securities plc.
The bonds are non-callable until March 31, 2018 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.
Paladin is applying to list the convertibles on the Singapore stock exchange.
Paladin is a uranium exploration company based in Subiaco, Australia.
| Issuer: | Paladin Energy Ltd.
|
| Issue: | Convertible senior unsecured bonds
|
| Amount: | $100 million
|
| Greenshoe: | $50 million
|
| Maturity: | March 31, 2020
|
| Bookrunner: | J.P. Morgan Securities plc
|
| Co-managers: | Nedbank Capital, Standard Bank of South Africa Ltd.
|
| Coupon: | 7%
|
| Price: | Par of $250,000
|
| Yield: | 7%
|
| Conversion premium: | 25%
|
| Conversion price: | US$0.356
|
| Calls: | Non-callable until March 31, 2018, then provisionally callable until year seven at 130% price hurdle
|
| Settlement date: | March 31
|
| Distribution: | Regulation S
|
| Price talk: | 6.5%-7%, up 25%-30%
|
| Stock symbol: | Australia: PLD
|
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