Paladin Energy launches $300 million of five-year convertibles

By Rebecca Melvin

New York, Oct. 26 - Paladin Energy Ltd. launched late Tuesday an offer to sell up to $300 million of five-year convertibles that are expected to price late Thursday, according to a company news release.

Paladin also announced that it launched a tender offer to acquire its $250 million of 4.5% convertible bonds due December 2011.

Any amount of proceeds from the new issue not used for the tender will be dedicated to fund in part the company's proposed expansion of the Langer Heinrich Mine and future growth opportunities.

The new Regulation S issue will be distributed in some provinces in Canada in minimum subscription amounts of at least $200,000 principal amount via joint bookrunners and joint lead managers Barclays Capital and JPMorgan, with Societe Generale as co-manager.

Settlement is seen Nov. 4, subject to customary approvals, including the approval of the Toronto Stock Exchange.

The 2011 convertibles are listed on the Singapore Exchange Trading Ltd. Paladin will pay $201,000 for each $200,000 in nominal amount of the 2011 convertibles. It will also pay accrued interest, which is expected to be $4,125 for each $200,000 of bonds.

In addition, the repurchase price will be increased by $2,000 to $203,000, for each bond validly tendered by Nov. 15.

Based in Perth, Western Australia, Paladin is a uranium exploration company with projects in Australia and Africa. Its shares are listed on both the Australian and Toronto stock exchanges.

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