Paladin Energy shares slide on downsized debt facility
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The news: Shares in Paladin Energy dropped in early trade after the uranium miner announced the restructuring of its syndicated debt facility with lenders Nedbank and Macquarie Bank.
The numbers: Paladin shares were down 4.4% to $8.36 at 10:40am AEDT. Uranium rivals Boss Energy (-20.8%) and Deep Yellow (-7.3%) also tumbled.
The context: The original debt facility was executed in January 2024 prior to the recommencement of production at the company's Langer Heinrich mine in Namibia and its acquisition of Canadian explorer Fission Uranium.
Paladin said the restructure aims to right-size the overall debt capacity, reducing it from USD150 million ($227 million) to USD110 million. The company said the move will leverage its improved liquidity position following the completion of a $300 million equity raise and $100 million share purchase plan this year.
The restructure will provide Paladin with a USD110 million debt facility, including a term loan facility of USD40 million, maturing in 2029, and an undrawn revolving credit facility of USD70 million, maturing in 2027.
As part of the restructure, a repayment of USD39.8 million will be made to reduce the term loan facility at completion.
The source: ASX
