Centrus Announces Proposed Private Offering of $350 Million of Convertible Senior Notes due 2030
Centrus Energy Corp. (NYSE American: LEU) has announced plans to offer $350 million of Convertible Senior Notes due 2030 in a private offering to qualified institutional buyers. The notes will pay interest semiannually on May 1 and November 1, starting May 1, 2025. Initial purchasers may receive an option to buy an additional $52.5 million in notes. The notes will be convertible to cash or a combination of cash and Class A common stock. Centrus plans to use the proceeds for working capital, technology development, debt repayment, capital expenditures, and potential acquisitions.
Centrus Energy Corp. (NYSE American: LEU) ha annunciato l'intenzione di offrire 350 milioni di dollari di Obbligazioni Convertibili Senior con scadenza nel 2030 in un'offerta privata destinata a investitori istituzionali qualificati. Le obbligazioni pagheranno interessi semestralmente il 1 maggio e il 1 novembre, a partire dal 1 maggio 2025. I primi acquirenti potrebbero ricevere un'opzione per acquistare ulteriori 52,5 milioni di dollari in obbligazioni. Le obbligazioni saranno convertibili in contante o in una combinazione di contante e azioni ordinarie di Classe A. Centrus prevede di utilizzare i proventi per il capitale circolante, lo sviluppo tecnologico, il rimborso del debito, le spese in conto capitale e potenziali acquisizioni.
Centrus Energy Corp. (NYSE American: LEU) ha anunciado planes para ofrecer 350 millones de dólares en Notas Senior Convertibles con vencimiento en 2030 en una oferta privada para compradores institucionales calificados. Las notas pagarán intereses semestralmente el 1 de mayo y el 1 de noviembre, comenzando el 1 de mayo de 2025. Los compradores iniciales pueden recibir una opción para comprar 52,5 millones de dólares adicionales en notas. Las notas serán convertibles en efectivo o en una combinación de efectivo y acciones comunes Clase A. Centrus planea usar los fondos para capital de trabajo, desarrollo tecnológico, pago de deuda, gastos de capital y posibles adquisiciones.
Centrus Energy Corp. (NYSE American: LEU)는 자격을 갖춘 기관 투자자들에게 3억 5천만 달러의 2030년 만기 전환 우선채권을 사모로 제공할 계획을 발표했습니다. 채권은 2025년 5월 1일부터 매년 5월 1일과 11월 1일에 반기마다 이자를 지급합니다. 초기 구매자는 추가로 5천 250만 달러의 채권을 구매할 수 있는 옵션을 받을 수 있습니다. 이 채권은 현금 또는 현금과 A급 보통주 조합으로 전환 가능할 것입니다. Centrus는 이 자금을 운영 자본, 기술 개발, 부채 상환, 자본 지출 및 잠재적 인수에 사용할 계획입니다.
Centrus Energy Corp. (NYSE American: LEU) a annoncé son intention d'offrir 350 millions de dollars d'Obligations Convertibles Senior arrivant à échéance en 2030 dans le cadre d'une offre privée réservée aux acheteurs institutionnels qualifiés. Les obligations paieront des intérêts semestriellement le 1er mai et le 1er novembre, à partir du 1er mai 2025. Les premiers acheteurs pourront recevoir une option d'achat de 52,5 millions de dollars supplémentaires en obligations. Les obligations pourront être converties en espèces ou en une combinaison de liquidités et d'actions ordinaires de Classe A. Centrus prévoit d'utiliser les fonds pour le fonds de roulement, le développement technologique, le remboursement de la dette, les dépenses d'investissement et d'éventuelles acquisitions.
Centrus Energy Corp. (NYSE American: LEU) hat Pläne angekündigt, 350 Millionen Dollar an wandelbaren Senior Notes mit Fälligkeit im Jahr 2030 im Rahmen einer Privatplatzierung an qualifizierte institutionelle Käufer anzubieten. Die Notes zahlen ab dem 1. Mai 2025 halbjährlich Zinsen, und zwar am 1. Mai und 1. November. Die Erstkäufer können die Option erhalten, zusätzlich 52,5 Millionen Dollar an Notes zu kaufen. Die Notes können in Bargeld oder in eine Kombination aus Bargeld und Stammaktien der Klasse A umgewandelt werden. Centrus plant, die Erlöse für Betriebskapital, Technologieforschung, Schuldentilgung, Investitionsausgaben und mögliche Übernahmen zu verwenden.
- Raising substantial capital of $350 million with potential for additional $52.5 million
- Flexible conversion terms allowing for cash or stock settlement
- Multiple use cases for proceeds including technology development and debt reduction
- Potential future dilution for existing shareholders upon note conversion
- Increased debt burden with new senior notes
- Additional interest payment obligations through 2030
Insights
This
The additional
The offering's structure under Rule 144A provides important regulatory flexibility while maintaining compliance with securities laws. The conversion terms are notably structured to manage dilution risk through a combination of cash and stock settlement options. Key legal protections include the senior, unsecured status of the notes and clearly defined conversion conditions before and after August 1, 2030.
The explicit disclaimers regarding registration status and offering limitations demonstrate proper regulatory compliance. The flexible settlement mechanism allowing for cash, stock, or combination payments on conversion premium provides important optionality for capital management while protecting shareholder interests.
BETHESDA, Md., Nov. 4, 2024 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) ("Centrus") today announced its intention to offer, subject to market conditions and other factors,
The Notes will pay interest semiannually in arrears on May 1 and November 1 of each year, beginning on May 1, 2025. The Notes will mature on November 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date.
When issued, the Notes will be senior, unsecured obligations of Centrus. Prior to the close of business on the business day immediately preceding August 1, 2030, the Notes will be convertible at the option of the holders of the Notes only upon the satisfaction of specified conditions and during certain periods. On or after August 1, 2030 until the close of business on the business day immediately prior to the maturity date, the Notes will be convertible, at the option of the holders of Notes, at any time regardless of such conditions. Upon conversion, Centrus will pay cash up to the aggregate principal amount of the Notes to be converted and pay or deliver, as the case may be, cash, shares of Class A common stock of Centrus or a combination of cash and shares of Class A common stock of Centrus, at Centrus' election, in respect of the remainder, if any, of the conversion obligation in excess of the aggregate principal amount of the Notes being converted. The final terms of the Notes, including the initial conversion rate, initial conversion price, interest rate and certain other terms, will be determined at the time of pricing of the Offering.
Centrus expects to use the net proceeds from this offering 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 and purposes.
The Notes will be offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offer and sale of the Notes and the shares of Class A common stock of Centrus issuable upon conversion of the Notes, if any, have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, the Notes and such shares, if any, may not be offered or sold in
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 (or any shares of Class A common stock of Centrus issuable upon conversion 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.
About Centrus Energy Corp.
Centrus is a trusted supplier of nuclear fuel components and services for the nuclear power industry. Centrus provides value to its utility customers through the reliability and diversity of its supply sources – helping them meet the growing need for clean, affordable, carbon-free electricity. Since 1998, Centrus has provided its utility customers with more than 1,850 reactor years of fuel, which is equivalent to more than 7 billion tons of coal. With world-class technical and engineering capabilities, Centrus is pioneering production of High-Assay, Low-Enriched Uranium and is leading the effort to restore America's uranium enrichment capabilities at scale to meet America's clean energy, energy security, and national security needs. Find out more at centrusenergy.com.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as "expects", "anticipates", "intends", "plans", "believes", "will", "should", "could", "would" or "may" and other words of similar meaning. Statements regarding the timing and amount of the Offering, including whether we will be able to consummate the Offering, the terms of the Offering, the satisfaction of customary closing conditions with respect to the Offering and the anticipated use of the net proceeds of the Offering are also forward-looking statements. These forward-looking statements are based on information available to us as of the date of this news release and represent management's current views and assumptions with respect to future events and operational, economic and financial performance. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control.
For Centrus, particular risks and uncertainties (hereinafter "risks") that could cause our actual future results to differ materially from those expressed in our forward-looking statements and which are, and may be, exacerbated by any worsening of the global business and economic environment include but are not limited to the following: risks related to the
Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. Readers are urged to carefully review and consider the various disclosures made in this news release and in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023, under Part II, Item 1A - "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and in our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
Contacts:
Investors: Dan Leistikow at LeistikowD@centrusenergy.com
Media: Lindsey Geisler at GeislerLR@centrusenergy.com
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SOURCE Centrus Energy Corp.
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