The Paladin Energy Ltd (ASX: PDN) share price has dropped by 5% after the ASX uranium share announced a restructuring of its debt.
Paladin describes itself as a globally significant independent uranium producer, with 75% ownership of the “world-class” Langer Heinrich Mine (LHM) which is located in Namibia.
Debt restructuring
The uranium miner revealed that it has restructured its syndicated debt facility with its lenders, which are Nedbank Limited, Nedbank Namibia and Macquarie Group Ltd (ASX: MQG).
This restructuring was executed on 18 December 2025, with completion of the restructure conditional on the finalisation of customary conditions.
The original debt facility was executed in January 2024 before the restart of production at the Langer Heinrich Mine and the company’s acquisition of Fission Uranium Corp.
The restructure aims to right-size the overall debt capacity, reducing it from US$150 million to US$110 million.
Paladin said that this move enhances its liquidity position following the successful completion of the A$300 million capital raising and $100 million share purchase plan (SPP) earlier this year.
The restructure also reflects the company’s “increasing maturity” as a uranium producer as it continues to progress the ramp-up at the LHM, while providing greater undrawn debt capacity and balance sheet flexibility.
What debt has changed
Paladin noted that of the total US$110 million debt facility, the term loan facility is now US$40 million (with the 30 September balance being US$79.8 million), reducing costs associated with the current debt portfolio, which matures on 28 February 2029.
It also as an undrawn revolving credit facility of US$70 million (on 30 September the balance was an undrawn US$50 million facility). This provides additional undrawn capacity, which matures on 28 February 2027, with an option to extend twice by a further year.
As part of the restructure, a repayment of US$39.8 million will be made to reduce the term loan facility at completion of this process.
Final thoughts on the Paladin share price
The ASX uranium share could play an increasingly important role as global energy demand increases due to data centres and other requirements.
It’s not the first energy business I’d buy, but the miner could have a profitable future ahead.
