Paladin Energy has executed a $150m (A$227.87m) syndicated debt facility as it prepares to recommence operations at the Langer Heinrich Mine (LHM) in Namibia.
This move is aimed at providing the Australian Securities Exchange (ASX)-listed uranium company with the financial flexibility necessary for its growth and operational activities.
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Additionally, the facility will support Paladin’s growth options including the advancement of the Michelin exploration project in Canada.
The debt facility is the culmination of a comprehensive syndication process that involved site visits to LHM by independent technical and environmental experts, thorough corporate due diligence and an international syndication process.
For this facility, Paladin partnered with two financial institutions, namely Nedbank, through its corporate and investment banking division (Nedbank CIB), and Macquarie Bank.
Nedbank CIB has taken the lead as the arranger and bookrunner for the deal.
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By GlobalDataThe facility is structured into two parts – a $100m amortising term loan with a five-year term and a $50m revolving credit facility with a three-year term, which includes options for two 12-month extensions.
As of 31 December 2023, Paladin’s financials showed a strong position with $61.6m in cash and cash equivalents and no corporate debt.
This liquidity is set to fund the completion of the LHM project and the restart of its operations.
Completion and first drawdown of the debt facility are subject to the finalisation of the remaining documentation and satisfaction of other customary conditions precedent.
Paladin CEO Ian Purdy said: “Executing a syndicated debt facility ahead of operations has been a key strategy for Paladin and reflects our commitment to prudent capital management, which benefits our 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 a return to production imminent, Paladin remains well positioned to generate strong returns for our stakeholders.”
