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Paladin Energy closes US$115M notes offering, completes restructuring

Paladin Energy Ltd. said Feb. 2 that it closed its fully subscribed offering of US$115 million senior toggle notes secured by certain Paladin subsidiaries and maturing Feb. 1, 2023.

The notes bear a 10% payment-in-kind interest per annum, to be deferred on each interest payment date starting March 31, or the issuer may elect to pay a cash interest rate of 9% per year from the same date.

Proceeds will be used to purchase Deutsche Bank's rights and obligations as the lender of an amended July 2017 US$60 million revolving credit facility, to cash back Nedbank Ltd.'s issuance of a performance bond for Paladin's Kayelekera uranium mine in Malawi and to finance the operations of the company and its subsidiaries.

The closing of the offering follows Paladin's announcement that it completed its previously announced restructuring through a deed of company arrangement that saw the transfer of 98% of its shares to creditors and other investors.

Paladin's restructuring deal led Phil Bailey, Don Shumka, Peter Donkin and Wendong Zhang to resign as company directors in December, but the miner has now named two new directors, David Riekie and Daniel Harris. Harris most recently served as interim CEO and managing director of Atlas Iron Ltd.

As a result of the restructuring, Paladin's administrators retired and returned management and control of the company to its directors.

The company now plans to apply for the reinstatement of its listing on the ASX.