Paladin Energy (ASX:PDN) continues to gain support from creditors for its previously outlined alternative restructuring proposal (ARP).
The ARP can be implemented in circumstances where Paladin ceases to hold an interest in the Langer Heinrich Mine located in Namibia.
Significantly, more than 75% of holders of 2017 convertible bonds have entered into binding commitment deeds to support the ARP.
This means the level of signed support from the 2017 convertible bondholders is now above the required 75% threshold to implement the ARP.
55% of holders of 2020 convertible bonds have entered into binding commitment deeds to support the ARP.
Paladin remains in active discussions with a single owner of 33% of the 2020 convertible bonds to obtain its support for the ARP.
Alternative financing
Discussions between Paladin and one of its financiers, Nedbank, have continued in relation to Nedbank’s security position under the ARP and its current rights given certain events.
In light of the feedback from Nedbank, Paladin is in discussions with a third party financier in order to meet several possible funding commitments.
These include:
- Paladin’s share of the working capital for the Langer Heinrich Mine;
- Refinancing the Nedbank revolving credit facility; and
- General corporate purposes of Paladin and its subsidiaries.
Paladin is working towards finalising transaction documents in the near future and further details of the facility will be announced at that stage.