Paladin refinances project debt
UPDATE 2.25pm: Struggling uranium miner Paladin Energy has refinanced the debt on its Langer Heinrich project after settling a deal to sell a 25 per cent stake in the operation for $US190 million.
Paladin today announced the settlement of the stake sale to China National Nuclear Corporation, allowing it to refinance its debts from $US110 million to $US70 million.
The company said the restructure would reduce its debt repayments by $US32.4 million until 2017.
It said its annual debt repayments would halve to $US9.09 million, with the first repayment of $US4.55 million not due until December.
Paladin managing director and chief executive John Borshoff said the company had been able to refinance the facility in a tough uranium price environment while 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," he said.
A languishing uranium price has weighed heavily on Paladin and its share price in the past few years following the Fukushima nuclear emergency in Japan.
Shares in Paladin closed up 1.5 cents, or 4.11 per cent, at 38 cents.
