By Kenneth Lim
Boston, Nov. 30 - Australia's Paladin Resources Ltd. on Thursday priced $250 million of five-year convertible unsubordinated unsecured bonds richer than talk, at a coupon of 4.5% and an initial conversion premium of 38%.
The bonds were offered at par and talked at a coupon of 4.5% to 5% and an initial conversion premium of 25% to 30%.
They will be convertible into Paladin's Australia-listed common stock.
RBC Capital Markets and UBS Investment Bank were the bookrunners of the Regulation S offering.
The bonds are non-callable for the first three years, after which they may be called subject to a hurdle at 130% of the conversion price. There is no put.
The bonds have dividend and takeover protection.
Paladin, a Subiaco, Western Australia-based uranium mining company with projects in Australia and Africa, said the proceeds of the deal will be used to develop a project in Malawi, to establish a uranium marketing subsidiary and for general purposes including acquisition opportunities.
| Issuer: | Paladin Resources Ltd.
|
| Issue: | Convertible unsubordinated unsecured bonds
|
| Bookrunners: | RBC Capital Markets and UBS Investment Bank
|
| Amount: | $250 million
|
| Maturity: | Dec. 15, 2011
|
| Coupon: | 4.5%
|
| Price: | Par
|
| Yield: | 4.5%
|
| Conversion premium: | 38%
|
| Conversion price: | $7.685, based on a fixed exchange rate of US$0.7854=A$1
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Jan. 4, 2010, thereafter callable subject to 130% hurdle
|
| Puts: | None
|
| Price talk: | 4.5%-5%, up 25%-30%
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 15
|
| Distribution: | Regulation S
|
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