Paladin Energy accepts $191 million of 5% convertibles for purchase

By Angela McDaniels

Tacoma, Wash., May 23 - Paladin Energy Ltd. received tenders for $295.6 million of its $325 million of 5% convertible bonds due March 2013, according to a company announcement.

A tender offer for up to $200 million principal amount of the convertibles began April 23 and ended at 10 a.m. ET on May 22.

Because the amount tendered exceeds the cap, the company accepted tendered convertibles on a pro rata basis. And because each tender was rounded down to the nearest $200,000, the amount of convertibles accepted is $191 million.

Paladin will pay $200,000 for each $200,000 nominal amount of convertibles accepted. This includes a premium of $2,000 per $200,000 of convertibles tendered by the early tender deadline, which was 7 a.m. ET on May 8.

The company will also pay accrued interest of about $2,166.67 for each $200,000 of notes up to but excluding the settlement date, which will be May 29.

Paladin said $293.4 million of the convertibles were tendered by the early tender date.

Funding for the offer will come from the company's $274 million issue of 6% senior convertible bonds due 2017.

Barclays Bank plc was the dealer manager for the tender offer.

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

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