Paladin Resources Arranges New Credit Facility
Paladin has signed a US $250 million Senior Secured Revolving Credit Facility Agreement with a syndicate of major international oil & gas lending banks led by J.P. Morgan.
Paladin's asset base has significantly increased and diversified since its debut syndication in 2000. As a result of this growth, the banking market was initially approached for a US $200 million facility and this was increased to US $250 million following a strong reception for the transaction. The facility will be used for general corporate purposes, including the funding of potential future acquisitions and the refinancing of existing indebtedness.
Roy Franklin, Chief Executive of Paladin, commented: "We are delighted with the debt market response to this refinancing which has been an unqualified success. The Group's existing assets are performing well and net debt should be around US $50 million by year-end, based on current oil prices. This new facility provides us with substantial headroom to pursue further growth opportunities as and when they arise."
Paladin has interests in the UK, Danish and Norwegian North Sea, Indonesia and the United States. In May, Paladin said its output levels had doubled to 33,000 barrels of oil equivalent (boe), following a surge in its Scandinavian business.