#United States #Centrus Energy #Bethesda #Convertible Notes #Private Offering

Centrus Energy's Successful Offering of Convertible Senior Notes

Centrus Energy Corp. (NYSE American: LEU), a leading supplier in the nuclear sector, recently announced the successful pricing of its private offering of zero-coupon convertible senior notes, totaling $700 million. This announcement comes as a significant boost to the company's financial strategy and highlights Centrus's strong position in the energy marketplace.

Details of the Offering

The offering, which has seen substantial interest, was initially set at $650 million. However, due to overwhelming demand, the total principal amount increased to $700 million. The notes, designated for individuals classified as qualified institutional buyers, fall under Rule 144A of the Securities Act of 1933, as amended.

Additionally, an opportunity exists for initial purchasers of these notes to acquire an extra $105 million principal amount within a 13-day settlement period following their initial issuance, which is expected to occur on August 18, 2025.

The zero-coupon notes will not generate regular interest but may accrue special interest under specific conditions outlined in the offering memorandum. They are set to mature on August 15, 2032, with provisions for repurchase, redemption, or conversion beforehand.

Conversion Features and Conditions

Notably, the conversion rate for the notes has been established at an initial rate of 4.3551 shares of Centrus' Class A common stock per $1,000 principal amount of notes, which equates to an approximate conversion price of $229.62 per share. This reflects a conversion premium of 22.5% over Centrus' last reported stock price on August 13, 2025. It is crucial to note that this conversion rate is subject to adjustments based on various factors, including corporate events that may occur before the maturity date.

Periodically, holders may find it possible to convert their notes under specified conditions leading up to the business day before May 15, 2032. Post this date, conversion requests may be submitted at any time until the trading day before maturity. Upon conversion, holders may receive cash or shares based on the company's discretion.

Redemption Rights and Obligations

Centrus retains the option to redeem the notes after August 20, 2029, if the market price of the Class A common stock has remained at least 130% of the conversion price for at least 20 trading days within any 30-day trading period before redemption notification. The notes are recognized as senior unsecured obligations for Centrus, ranking above any subordinated unsecured indebtedness but junior to any secured debts.

Financial Implications and Future Use

Following the offering, Centrus anticipates net proceeds of around $680 million, with potential increases if the additional notes are purchased. These proceeds will primarily be allocated for general corporate purposes, streamlining Centrus's operations and strengthening its financial base in the competitive energy sector.

About Centrus Energy

Centrus Energy is firmly established as a trusted American provider of nuclear fuel services, catering to the ongoing demand for clean energy solutions. Since its inception in 1998, Centrus has delivered an impressive 1,850 reactor years worth of fuel to its utility customers, equating to more than 7 billion tons of coal in energy equivalence. The company is also at the forefront of developing High-Assay, Low-Enriched Uranium to bolster domestic uranium enrichment capabilities—an essential component in promoting energy security and addressing future energy demands.

The recent successful note offering underscores both Centrus's robust market presence and its commitment to advancing nuclear energy solutions. As the global energy landscape evolves, Centrus aims to play a pivotal role in ensuring sustainable, affordable, and carbon-free energy for the future.

For more information, please visit Centrus Energy's website.