Paladin Energy Ltd
TSX : PDN
ASX : PDN

Paladin Energy Ltd

December 16, 2010 09:00 ET

Paladin Energy Ltd Announces Exercise of Optional Redemption Right in Relation to Outstanding Convertible Bonds Due 2011

PERTH, WESTERN AUSTRALIA--(Marketwire - Dec. 16, 2010) -

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Paladin Energy Ltd. (TSX:PDN)(ASX:PDN) – Paladin Energy Ltd (Paladin) announces the exercise of its optional redemption right (the Optional Redemption Right) regarding its outstanding 4.50% Convertible Bonds due 2011 (ISIN XS0277770151) (the Bonds).

Paladin previously announced on 27 October 2010, its intention to repurchase outstanding Bonds and invited certain holders of the Bonds (the Bondholders) to tender any or all of their Bonds for repurchase by Paladin for cash (the Offer) upon the terms and subject to the conditions set forth in the tender offer memorandum previously made available to Bondholders.

On 30 November 2010 Paladin announced that pursuant to the Offer it had repurchased and cancelled an aggregate nominal amount of U.S.$229,600,000 Bonds (the Repurchased Bonds). Following such repurchase and cancellation, the aggregate nominal amount of Bonds remaining outstanding is U.S.$20,400,000 (the Remaining Bonds).

The Repurchased Bonds constitute more than 85 per cent. of the principal amount of Bonds originally issued. Accordingly, on 16 December 2010 Paladin provided holders of the Remaining Bonds with notice of the exercise of its Optional Redemption Right pursuant to Condition 7(b)(ii) of the Bonds in respect of all Remaining Bonds.

Paladin wishes to inform holders of the Remaining Bonds that:

  • the Remaining Bonds will be redeemed on 18 January 2011 (the Optional Redemption Date);
  • on the Optional Redemption Date Paladin will redeem all of the Remaining Bonds at their principal amount (together with accrued but unpaid interest of U.S.$825 per U.S.$200,000 in principal amount of Remaining Bonds);
  • as at 16 December 2010, the conversion price of the Remaining Bonds was U.S.$7.685;
  • as at 15 December 2010 the closing price of one Ordinary Share in the capital of Paladin on the Toronto Stock Exchange was C$4.93 (U.S.$ 4.91(1)); and
  • the last day on which holders of the Remaining Bonds may exercise their conversion rights in respect of the Remaining Bonds is 7 January 2011.

Following redemption of the Remaining Bonds on the Optional Redemption Date all Remaining Bonds will be cancelled in accordance with Condition 7(g) of the Bonds.

ACN 061 681 098

(1) Converted to U.S.$ at the C$:U.S.$ exchange rate of C$1.00 : U.S$0.995 on 15 December 2010

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