Paladin Energy has acquired a US$150m (N$2,9b) syndicated debt facility which provides capital flexibility as the company recommences operations at the Langer Heinrich Mine (LHM) in Namibia and progresses its growth options, including progressing the Michelin exploration project in Canada.
The company secured the Debt Facility from Nedbank Limited, through its Corporate and Investment Banking division and Macquarie Bank Limited, a leading Australian bank.
Nedbank Corporate Investment Banking division is acting as lead arranger and bookrunner.
In a statement Thursday, Paladin said the execution of the Debt Facility marks the successful completion of a comprehensive syndication process, including Langer Heinrich Mine site visits by independent technical and environmental experts and financier teams, corporate due diligence and an international syndication process.
The Debt Facility comprises a US$100m amortising term loan (Term Facility) with a 5-year term and a US$50m revolving credit facility with a 3-year term (with two options to extend by 12 months).
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Paladin had cash and cash equivalents of US$61,6m with no corporate debt, providing funding for the completion of the LHM Project and the restart of operations as at 31 December 2023.
The completion and first drawdown under the Debt Facility is conditional on finalising the remaining documentation and other customary conditions precedent.
Paladin CEO Ian Purdy said executing a syndicated debt facility ahead of operations has been a key strategy and reflects a commitment to prudent capital management, which benefits the company and shareholders.
“The debt facility will provide increased capital flexibility as we transition through ramp-up and progress to full production at the Langer Heinrich Mine. With a strong uranium price outlook and an imminent return to production, Paladin remains well positioned to generate strong returns for our stakeholders,” Purdy said.
