- Paladin Energy (PDN) is set to undertake a $218.7 million equity raise in a bid to redeem senior debts and reset its capital structure
- The funds are set to be raised via a fully underwritten entitlement offer and an institutional placement
- Should it receive the proceeds as planned, Paladin is looking to pay off senior secured notes issued as part of its debt restructure back in 2018
- In a broader context, it’s hoped clearing the debt will allow Paladin a clear pathway to achieving restart funding for its Langer Heinrich uranium mine in Namibia
- Prior to the trading halt, Paladin Energy last traded at 46.5 cents per share
Paladin Energy (PDN) is set to undertake a $218.7 million equity raise in a bid to redeem senior debts and reset its capital structure.
The uranium production company is looking to raise the funds via a fully underwritten one for pro-rata accelerated non-renounceable entitlement offer and institutional placement.
More specifically, Paladin plans to apply the proceeds to the full redemption of outstanding senior secured notes that the company issued in connection with a restructuring of its debt obligations in early 2018.
In a broader context, it’s hoped clearing the debt will allow Paladin a clear pathway to achieving restart funding for its Langer Heinrich uranium mine in Namibia.
Placement details
The institutional placement component comprises approximately 347.3 million new fully paid ordinary shares in new Paladin shares to raise $128.5 million.
The entitlement offer faction includes a one-for-8.5 pro-rata accelerated non-renounceable entitlement offer of approximately 243.7 million new shares to raise roughly $90.2 million.
New shares are set to be issued at 37 cents per share, representing a 16.7 per cent discount on the theoretical ex-rights price (TERP), which is the theoretical price at which Paladin shares are expected to go for immediately after the ex-date for the entitlement offer.
According to Paladin, this also represents a 20.4 per cent discount to last close and a 17.2 per cent discount on the five-day volume-weighted average price.
Prior to the trading halt, Paladin Energy last traded at 46.5 cents per share.