Paladin Energy Ltd. announced that it has entered into agreements with its lenders to refinance the Langer Heinrich (LH) and the Kayelekera project finance facilities. This new facility will provide significant cash flow benefits to both projects and leaves Paladin in a much stronger financial position. As shown below, the annual principal repayments across both projects will be reduced from $53.8 million per annum to $18.3 million per annum in calendar year 2014, a substantial reduction of $35.5 million, with the first repayment not due until June 2014.

In calendar year 2015, annual principal repayments under the existing facilities compared to the new facility will be reduced by a further $23.7 million. The terms and conditions of the new LH facility are largely the same as for the existing project finance agreement except for an increased amount, extension of term and a reduction in principal repayments from $23.8 million per annum to $18.3 million per annum. In addition, Paladin has secured a $20 million working capital facility to provide additional financial flexibility.

The Kayelekera project finance facility (currently $48.1 million) will be repaid in full immediately, however, the facility and existing security arrangements will remain in place to support the $10 million Performance Bond. Overall, this rationalisation in the project financing reduces the Company's debt position and provides the benefit of substantially reduced repayments over the next three years, conserving operational cash flow. The new facility 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.