Paladin Accepts CIC for Additional US$50M of Convertible Bonds...

Paladin Accepts CIC for Additional US$50M of Convertible Bonds Paladin Energy Ltd (Paladin) refers to its announcements of 12 February 2015 regarding the launch and pricing of an offering of US$100M of senior, unsecured convertible bonds due 31 March 2020 (Convertible Bonds), further details of which are set out in the Notice of General Meeting released 24 February 2015 in relation to the shareholder meeting to be held on 30 March 2015. As described in the 12 February 2015 and 13 March 2015 announcements and in the Notice of General Meeting, the agreement between Paladin and J.P. Morgan Securities plc (J.P. Morgan) (as sole lead manager) in relation to the issue of the US$100M Convertible Bonds provides that Paladin and J.P. Morgan may agree, on or prior to 24 March 2015, for Paladin to issue up to a further US$50M of Convertible Bonds to existing or potential strategic partners (the Upsize Option). Paladin is pleased to confirm that it is has exercised the Upsize Option and agreed to issue US$50M of Convertible Bonds to Leader Investment Corporation, a controlled subsidiary of China Investment Corporation (CIC). The US$50M Convertible Bonds will be issued to CIC on the same terms and conditions as the previously announced US$100M Convertible Bonds that are to be issued to clients of J.P. Morgan. The terms and conditions of the US$150M Convertible Bonds are summarised in the Notice of General Meeting. CIC has obtained FIRB approval for the acquisition of the US$50M Convertible Bonds and the issue of the aggregate of US$150M Convertible Bonds is now only subject to shareholder approval at the General Meeting of Paladin shareholders to be held on 30 March 2015. If shareholder approval is received at the General Meeting, it is intended that the US$150M Convertible Bonds will be issued on or about 31 March 2015. As previously advised, approximately US$100M of the proceeds of the US$150M Convertible Bond issue will be used to repurchase the US$300M 3.625% convertible bonds due November 2015, in full and approximately 6 months prior to the due date. The remaining proceeds will be used to provide Paladin with additional funding flexibility. CEO and Managing Director, John Borshoff, commented, “The investment by CIC provides Paladin with additional funding flexibility and bolsters our cash position thereby, further reducing the need for any additional funding in the medium term and enabling Paladin to fully capitalise on its strategic value. More importantly, Paladin’s new relationship with CIC as one of the largest sovereign wealth funds in the world sets a possible platform for Paladin’s future development and growth to become a true Tier 1 uranium producer amongst its peers