Centrus Energy Corp. has announced the pricing of $350 million aggregate principal amount of 2.25% convertible senior notes due 2030 in a private offering to qualified institutional buyers. The notes will bear interest at a rate of 2.25% per year and mature on November 1, 2030. The conversion rate for the notes will initially be 10.2564 shares of class A common stock of Centrus per $1,000 principal amount of notes.
Centrus estimates that the net proceeds from the offering will be approximately $337.9 million (or approximately $388.7 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting fees and estimated expenses. The company intends to use the net proceeds for general working capital and corporate purposes, which may include investment in technology development or deployment, repayment or repurchase of outstanding debt, capital expenditures, potential acquisitions, and other business opportunities.
The notes were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and have not been registered under the Securities Act or the securities laws of any other jurisdiction.
Centrus, a trusted supplier of nuclear fuel components and services for the nuclear power industry, has provided its utility customers with more than 1,850 reactor years of fuel since 1998. The company aims to meet the growing need for clean, affordable, carbon-free electricity and is pioneering the production of high-assay, low-enriched uranium.
This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer or sale of the notes in any state or jurisdiction in which the offer, solicitation, or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction. Following these announcements, the company's shares moved -5.1%, and are now trading at a price of $74.04. For more information, read the company's full 8-K submission here.
