It's been a jam packed week for the miner which secured a $US167 million finance facility for its Kayelekera uranium project in Malawi, released its interim report and was awarded the Angela and Pamela deposits in the Northern Territory.
Late yesterday, Paladin launched the offer to raise up to $US275 million of senior, unsecured convertible bonds due in 2013, with the joint bookrunners and joint lead managers having the option to increase the issue up a further $50 million.
The miner said the bonds carry a coupon of 5% per annum and are convertible into Paladin shares at $US6.59 each, which represents a conversion premium of some 25% above the reference price of $A5.76.
The bonds will be redeemed on March 11, 2013, with Paladin holding the option to redeem all outstanding bonds on or after April 1, 2011 if the company's exceed 130% of the conversion price for a specified period.
Paladin said it plans to list the bonds on the Singapore Stock Exchange.
"This oversubscribed issue further illustrates that investors remain confident in both the uranium market and Paladin's strategy to become a global leader in the industry," managing director John Borshoff said.
Funds from the raising will go towards increasing production at the Langer Heinrich uranium mine in Namibia, exploration costs at the Angela and Pamela deposits and funding new acquisition opportunities.
The Angela and Pamela deposits are a joint venture with Cameco Australia.
Shares in Paladin shed 42c to $5.42 in morning trade today.
