CEO John Borshoff said in a notice posted on the Namibia Stock Exchange that Paladin has refinanced the existing US$110 million project loan facility and US$20 million working capital loan into a new US$70 million loan facility. Proceeds from the LH minority sale were utilised to prepay US$30 million of the existing facility, taking the outstanding balance to US$70 million, Borshoff said.
“This new facility will provide significant cash flow benefits and further strengthen Paladin´s financial position,” he said. The annual principal repayments will reduce by US$32,4 million over the first three years of the loan, from US$18,33 million per annum to US$9,09 million per annum with the first repayment of US$4,55 million not due until December this year.
The new loan is provided by Nedbank Capital, a division of Nedbank Limited, Nedbank Namibia Limited, the Standard Bank of South Africa Limited and Standard Bank Namibia Limited. Both banks have been involved with Paladin since the first Langer Heinrich project finance facility was established in 2006.
“Once again, Paladin has been able to refinance the facility in a tough uranium price environment whilst significantly reducing the security requirements and medium term principal repayments. Paladin continues to focus on ways to reduce the company’s overall debt levels and this represents another step in this process,” said Borshoff said.