North American Palladium Ltd. Announces CAD43 Million Offering of Convertible Debentures

North American Palladium Ltd. announced that it entered into an agreement with a syndicate of underwriters co-led by Scotia Capital Inc. and Raymond James Ltd. under which they have agreed to act as underwriters to purchase, on a bought deal basis, 43,000 convertible unsecured subordinated debentures (the "Debentures") of NAP at a price of CAD1,000 per Debenture, for total gross proceeds of CAD43 million (the "Offering"). The Underwriters have been granted an option (the "Option") to purchase up to an additional 15% of the Offering, exercisable in whole or in part at any time up to 30 days following the closing of the Offering, which is scheduled to occur on or about July 31, 2012 (the "Closing Date"). The Debentures will mature on September 30, 2017 (the "Maturity Date"), unless earlier redeemed, and will bear interest, accruing, calculated and payable semi-annually in arrears on March 31 and September 30 of each year, at a rate of 6.15% per year. The Debentures will be convertible at the holder's option into common shares ("Common Shares") of the Company at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date fixed for redemption of the Debentures at a conversion price of C$2.90 per Common Share (the "Conversion Price"). The proceeds from the Offering will be used for the Company's mine expansion expenditures at its Lac des Iles palladium mine and for general corporate purposes.