Centrus Energy announces $650 million convertible notes offering

BETHESDA, Md. - Centrus Energy Corp. (NYSE American:LEU), a nuclear fuel supplier with a market capitalization of nearly $4 billion and an impressive 459% return over the past year according to InvestingPro, announced Tuesday its intention to offer $650 million in Convertible Senior Notes due 2032 to qualified institutional buyers in a private offering under Rule 144A of the Securities Act.

The company plans to grant initial purchasers an option to buy up to an additional $100 million in notes within 13 days of the first issuance on the same terms.

The notes will bear interest semiannually, with payments beginning February 15, 2026, and will mature on August 15, 2032, unless earlier repurchased, redeemed or converted. As senior unsecured obligations, the notes will be convertible under specific conditions prior to May 15, 2032, and at any time afterward until two days before maturity.

Upon conversion, Centrus will pay cash up to the aggregate principal amount of the notes being converted and may deliver additional cash, shares of Class A common stock, or a combination of both for any remaining conversion obligation. The initial conversion rate, price, interest rate and other terms will be determined at pricing.

Centrus intends to use the net proceeds for general corporate purposes.

The notes and any shares issuable upon conversion have not been registered under the Securities Act and may not be offered or sold in the United States without applicable exemption from registration requirements.

Centrus Energy supplies nuclear fuel and services to the nuclear power industry and is working to restore America’s uranium enrichment capabilities.

The announcement was made in a company press release statement.

In other recent news, Centrus Energy Corp. reported impressive second-quarter 2025 financial results, with revenue reaching $154.5 million, surpassing forecasts by 18.68%. The company’s earnings per share (EPS) stood at $1.59, significantly exceeding the expected $0.84, marking an EPS surprise of 89.29%. Stifel responded by raising its price target for Centrus Energy to $242, maintaining a Buy rating due to the company’s strong performance. Meanwhile, BofA Securities downgraded Centrus Energy from Buy to Neutral, despite increasing its price target to $285, attributing the decision to the company’s recent earnings report. William Blair reiterated an Outperform rating, emphasizing Centrus Energy’s unique position in uranium enrichment. In a strategic move, Centrus Energy appointed Todd Tinelli as the new Chief Financial Officer, effective August 11, succeeding Kevin Harrill. These developments reflect Centrus Energy’s robust financial health and strategic management decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.