Nedbank, Macquarie lend Langer Heinrich US$150m


Paladin Energy Limited has announced that it executed a US$150 million syndicated debt facility (debt Facility) this week.

The debt facility will provide Paladin with 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.

Paladin said the execution of the debt facility marks the successful completion of a comprehensive syndication process, including LHM site visits by independent technical and environmental experts and financier teams, corporate due diligence and an international syndication process.

Paladin said it had executed the debt facility with two lending financial institutions, Nedbank Limited, acting through its Corporate and Investment Banking division (Nedbank CIB) and Macquarie Bank Limited, with Nedbank CIB acting as lead arranger and book runner.

The debt facility comprises a US$100 million amortising term loan with a five-year term; and a US$50 million revolving credit facility with a three-year term (with two options to extend by 12 months)

As at 31 December 2023, Paladin held cash and cash equivalents of US$61.6 million, with no corporate debt, providing funding for the completion of the LHM Project and the restart of operations.

Completion and first drawdown under the Debt Facility is conditional on the finalisation of 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 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.”

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